BP acquired a 10% stake in the Bab Gas Cap project in the United Arab Emirates on Thursday. The company signed a concession agreement with the Abu Dhabi National Oil Co. (ADNOC) and its partners. This agreement marks BP's first upstream gas deal in the emirate. BP will also act as the asset lead for the Bab oilfield.
The project targets three reservoirs in one of Abu Dhabi's largest onshore oilfields. It is expected to produce up to 1.5 billion cubic feet of gas per day.
BP shares dropped 1.4% to approximately 473 pence in London trading. The stock lagged the broader FTSE 100 index. Analysts suggest weakening oil prices drove the decline, overshadowing the strategic value of the gas project.