The UAE's state-owned oil and gas company, Abu Dhabi National Oil Co. (ADNOC), is considering acquiring certain key assets of British energy giant BP plc, should BP decide to break up its business or be forced to sell off more assets.
Report informs, citing Interfax and Western media sources, that ADNOC is conducting internal evaluations and has already held preliminary consultations with bankers. The company is also considering partnering with another investor to split the assets.
ADNOC is said to be more interested in BP's LNG assets and gas fields, rather than acquiring the entire company—though a full takeover was reportedly reviewed as an option.
Sources note that ADNOC is not interested in BP's oil extraction assets or refineries, making a full acquisition unattractive. Moreover, political risks associated with buying the entire company would likely deter such a move.
If ADNOC proceeds, the bid would most likely be made through its international investment arm, XRG, insiders say. ADNOC or XRG may also consider acquiring BP's retail fuel station business.
BP CEO Murray Auchincloss is reportedly shifting the company's focus away from its net-zero emissions strategy back toward the oil and gas sector, and has promised to sell off assets.
