London-based
oil giant BP's Chief Executive Dudley looks on during the Abu Dhabi
International Petroleum Exhibition and Conference at the Abu Dhabi National
Exhibition Center
Oil major BP PLC , shut out of pre-qualification bidding to develop Abu
Dhabi's largest onshore oil fields, is hopeful it can be included in the
process and is waiting to hear soon on the issue, Chief Executive Bob Dudley
said on Sunday (November 11, 2012).
"I'm positive about it ... I'm optimistic that cooperation will go on for a
long time," Dudley said on the sidelines of an oil and gas event in the UAE
capital, adding that he hopes to hear about the concessions "in the next
week or so".
Industry sources had told Reuters in August that BP, which holds a 9.5
percent stake in the ADCO concession that is coming up for renewal in 2014,
would not be allowed to participate in the pre-qualification process due to
the United Arab Emirates' irritation over UK policies.
"We never knew we were excluded and I think the spirit and the feeling of
the communications that we have is positive and we have been talking at
multiple levels on this," Dudley said.
Asked if British Prime Minister David Cameron's visit to the UAE last week
had made a difference for BP's future over the concessions, Dudley said: "I
think David Cameron has been a great advocate for British business in
general in a broad sense so it was good to see him here in Abu Dhabi."
Cameron visited the UAE last week as part of a wider trade and diplomacy
tour of the Gulf. Lucrative arms deals were a main topic of discussion, as
well as British efforts to balance concerns over human rights issues in Gulf
states, which have struggled to contain protests inspired by the Arab
Spring.
ADNOC OPTS FOR UNCHANGED STRUCTURE
Cameron's visit came as oil majors operating in OPEC member UAE brace for a
decision from Abu Dhabi on the oil and gas concessions.
The concessions system allows oil and gas producers to acquire equity in
hydrocarbons from the OPEC member in return for investing in projects.
On Sunday, Abu Dhabi National Oil Co's (ADNOC) director-general said ADNOC
preferred to maintain the current structure of concessions in the United
Arab Emirates and that it would present its recommendation to the Supreme
Petroleum Council of Abu Dhabi (SPC) by early next year at the latest.
"It is our recommendation to have the same format. But this will be
submitted to the SPC and they can decide if they want to change," Abdulla
Nasser Al-Suwaidi told reporters on the sidelines of an oil and gas
conference. "Submission is going to be late this year or early next year."
Some big oil companies, notably ExxonMobil , have expressed their discomfort
about the concession structure. They are concerned about operating side by
side with rivals in an ADNOC-controlled concession, with all partners
expected to share their own technology.
The SPC is the highest authority responsible for the petroleum affairs in
the Emirate of Abu Dhabi, which has the largest share of the UAE's oil and
ambitious plans to invest $60 billion over the next five years to boost oil
production capacity to 3.5 million barrels per day (bpd), from 2.7 million.
Oil concessions which lie at the heart of these plans have been under the
spotlight since early last year as the date for the renewal of the biggest
field with 1.5 million bpd capacity approaches.
