As part of the deal, which was signed with Supreme Petroleum Council of the Emirate of Abu Dhabi and ADNOC, BP will also become a 10% shareholder in Abu Dhabi Company for Onshore Petroleum Operations (ADCO), which operates the onshore concession.

The oil and gas firm will pay about $2.2bn through the issue of new shares for the stake in the concession to get stake in Abu Dhabi’s largest oilfields.

Upon completion of the deal, BP will become 10% shareholder of ADCO and the concession alongside Total, Inpex, and GS Energy which own 10%, 5% and 3% interests respectively.

ADNOC is seeking other potentials partners to divest the remaining 12% stake of the planned 40% for foreign partners.

BP Group CEO Bob Dudley said: “This agreement will provide BP with long-term access to significant and competitive resources that we already understand very well.”

The ADCO concession comprises the Bab, Bu Hasa, Shah and Asab fields. The total resources are estimated between 20-30 billion barrels of oil equivalent over the term of the concession.

ADNOC Group CEO Dr Sultan Ahmed Al Jaber said: “This agreement marks a milestone in our efforts to forge new partnership models that bring technology, expertise and financing aimed at maximizing the value of our resources and supporting the transfer of knowledge.”

The 2016 overall production in is expected to average around 1.66 million barrels of oil per day (bpd).

BP CFO Brian Gilvary said: “It is consistent with our aim of delivering competitive returns from a portfolio with a balance of resource types, geographies and resilient pricing models.

“The lower cost characteristics of this already-producing conventional onshore oil development will be accretive to earnings and cash flow, while providing BP with another building block of long-term growth.”

Commissioned in 2015, the concession is valid until the end of 2054. The 2016 production at the concession is expected to average around 1.66 million barrels of oil per day (bpd).

Image: Officials from BP and Abu Dhabi National Oil Company during agreement signing ceremony. Photo: courtesy of Abu Dhabi National Oil Company.