BP signs Abu Dhabi oil deal worth $2.2 billion

British oil giant BP has struck a deal to take a 10% share in an onshore oil concession in Abu Dhabi, in one of the largest oil fields in the Middle East, in a deal worth $2.2 billion.

Bob Dudley (pictured), BP group chief executive, welcomed Abu Dhabi as an "important investor in BP", saying the deal cements the company's relationship with the country.

Dudley said in a statement:

"This agreement will provide BP with long-term access to significant and competitive resources... We will bring our people, cutting-edge technology and experience of managing mature giant fields around the world to help maximise recovery from these assets."

The deal means BP gets a stake in the Abu Dhabi Company for Onshore Petroleum Operations (ADCO), which operates the 40-year concession, as well as access to onshore oil fields expected to produce the equivalent of 20 to 30 billion barrels of oil over the period for which the deal is valid (four decades). It replaces a deal which expired in 2014, and which gave BP a 9.5% stake in the state-owned Abu Dhabi National Oil Company, of which ADCO is a subsidiary.

BP will pay the Abu Dhabi government with new shares (worth $2.2 billion), giving the emirate a 2% stake in the company and making it one of the company's largest shareholders.