Deals

BP Gains Abu Dhabi Oil Field Stake for $2.2 Billion in Stock

  • U.K. company wins 10% interest in ADCO onshore oil concession
  • Abu Dhabi to hold 2% of BP after issuance at 447 pence a share

BP Gains Abu Dhabi Oil Field Stake

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BP Plc cemented its 77-year relationship with Abu Dhabi by swapping about $2.2 billion of its own shares for a stake in one of the emirate’s largest onshore oil concessions.

The U.K.’s second-biggest oil group will issue new ordinary shares to pay for 10 percent of the Abu Dhabi Company for Onshore Petroleum Operations Ltd., giving the emirate a 2 percent holding in BP, the London-based company said Saturday in a statement. Abu Dhabi investor Mubadala Development Co. is likely to hold the BP shares, two people with knowledge of the matter said, asking not to be named before a formal announcement.