BP Takes 10 Percent Stake In ADNOC’s Bab Gas Cap Project

BP has signed a concession agreement with ADNOC and other partners for the Bab Gas Cap project, giving the company a 10 percent stake and its first access to upstream gas resources in Abu Dhabi. Reuters reported that the project covers three reservoirs in the onshore Bab Field and is expected to produce up to 1.5 billion cubic feet of natural gas per day. ADNOC will retain a 60 percent interest, with partners including TotalEnergies, CNPC International, INPEX, China ZhenHua Oil and GS Energy. The agreement is important for both energy supply and industrial strategy. Gas remains central to the UAE’s domestic energy system, supporting power generation, industrial feedstock and long-term LNG export plans. Additional upstream gas production can help strengthen supply security while supporting ADNOC’s wider growth agenda. For BP, the deal deepens its Abu Dhabi presence. The company already holds interests in ADNOC Onshore, ADNOC LNG, the National Gas Shipping Company and ADNOC’s Ruwais LNG development. The Bab Gas Cap agreement adds a direct upstream gas dimension to that portfolio. The Bab Field is one of Abu Dhabi’s major onshore assets, and BP will also serve as asset lead for the Bab Oil Field under the arrangement. That role gives the company operational responsibility in a field that remains strategically important for Abu Dhabi’s energy base. The project also reflects a broader pattern in Gulf energy: national oil companies are continuing to develop gas resources even as…