Shell and BP could win Gulf oilfields deal

Suhail Al-Mazrouei, minister of energy for the United Arab Emirates and a member of the Gulf state’s powerful Supreme Petroleum Council, told The Telegraph that both British oil majors remained under consideration for the renewal of expired contracts to produce oil from Abu Dhabi’s onshore fields.

“Shell and BP are amongst those companies that submitted bids,” said Mr Al Mazrouei. “We respect the long and historical relationship and investments they still have in the UAE. They have been legacy partners, and we hope they will have a chance and play a role in the future of the oil industry in Abu Dhabi.”

Shell and BP are among the international oil companies that have been involved with onshore oil production in the emirate for decades through partnerships with the Abu Dhabi Company for Onshore Oil Operations, which has been responsible for pumping 1.5m barrels per day of crude.

However, these agreements – some of which date back 75 years to the dawn of Gulf oil production – expired this year, triggering a race to form new strategic oil pacts with Abu Dhabi.

The UAE is a major investor in Britain, with assets that includd renewable energy and North Sea oil fields.

Speaking from the perspective of the emirates’ continued foreign investment in Britain, Al-Mazrouei indicated that the government in Abu Dhabi was relieved by the outcome of the independence referendum in Scotland.

“The solidarity of the Union in the UK after the referendum, I think it makes the UK stronger,” he said. “It makes the future bright and continues what we know about the UK. If there was separation then you are dealing with a different structure of the government.”

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