Image: bp’s Tangguh Ubadari gas field located in Indonesia.
(Bloomberg) – ADNOC is evaluating whether it can buy some of bp Plc’s key assets should the embattled British firm decide to break itself up or come under pressure to divest more units, according to people with knowledge of the matter.
Abu Dhabi National Oil Co. has been internally studying the prospects for acquiring some bp assets and has held initial consultations with bankers, the people said, asking not to be identified because the discussions are private. It is also considering partnering with another bidder to split some of the assets, they said.
ADNOC is most interested in bp’s LNG and gas fields, rather than taking over the entire company, though it has also considered that option, the people said. ADNOC, one of the most active dealmakers in recent months, recently started an international unit called XRG PJSC, which is on the hunt for gas and chemicals deals as it targets an $80 billion enterprise value.
Any deal is likely to be pursued through XRG, some of the people said. ADNOC or XRG could also look at bp’s fuel retailing business, according to the people.
ADNOC referred questions to XRG, which declined to comment. The company’s plans are still under consideration and it may also decide not to bid for any assets at all, the people familiar with the situation said. bp also declined to comment.
ADNOC isn’t interested in bp’s oil production assets or refineries, the people said. That makes the option of buying all of bp unattractive, they said. The political risks associated with taking over the storied British company outright is also likely to deter ADNOC, according to the people familiar with its internal thinking.
ADNOC and bp have a long history of working together on projects. The London-headquartered company helped discover oil in Abu Dhabi more than half a century ago, and is a minority shareholder in ADNOC’s largest onshore field which produces the company’s benchmark Murban crude.
