BP has signed a concession agreement with ADNOC and its partners to develop the Bab Gas Cap project in Abu Dhabi, marking the British energy major’s first direct access to upstream gas resources in the emirate.
The agreement, announced on Thursday, gives BP a 10% stake in the project, which is located within the onshore Bab Field, one of Abu Dhabi’s largest hydrocarbon assets.
The development covers three gas reservoirs and is expected to produce up to 1.5 billion cubic feet of natural gas per day once operational.
The project is designed to strengthen the UAE’s domestic gas supply, providing feedstock for industry and supporting the country’s growing energy demand.
It will also help underpin ADNOC’s plans to expand its liquefied natural gas (LNG) export capacity as it seeks to increase its global market presence.
Under the concession structure, ADNOC will retain a 60% interest, while the remaining stake is shared among international partners including TotalEnergies, CNPC International, INPEX, China ZhenHua Oil and GS Energy.
BP will additionally serve as the asset lead for the Bab Oil Field, reinforcing its operational role in Abu Dhabi’s upstream sector.
The deal deepens BP’s long-standing relationship with ADNOC, where it already holds interests in ADNOC Onshore, ADNOC LNG, the National Gas Shipping Company and the Ruwais LNG project.
The agreement highlights Abu Dhabi’s strategy of partnering with global energy firms to accelerate gas development and support energy security objectives.
For BP, the move strengthens its position in the Middle East and expands its exposure to natural gas projects amid rising global demand for the fuel.