Report: ADNOC weighing potential purchase of some bp assets

Abu Dhabi National Oil Company is evaluating whether to buy some of bp’s key assets if the British firm decides to break itself up, or if it comes under pressure to divest more units, Bloomberg has reported.

According to the Bloomberg report, ADNOC has held initial consultations with bankers on these possible acquisitions.

ADNOC is reportedly most interested in bp’s liquefied natural gas and gas fields, rather than taking over the entire company – although it has also considered that option, according to the report.

bp’s market value has slumped by a third in just over a year to less than $80 billion, and it has been battling a prolonged underperformance. As part of those efforts, CEO Murray Auchincloss is trying to pivot back to oil and gas and away from renewables, while also promising to sell assets.

Analysts say that ADNOC’s interest in bp’s assets highlights a strategic focus on natural gas, aligning with the global shift to cleaner energy. The Bloomberg report also commented that the potential deal could involve partnering with another bidder, allowing each party to focus on their interests.

Any acquisition likely would be carried out by ADNOC’s new international unit called XRG, which is on the hunt for gas and chemicals deals, the report said.