ADNOC’s interest in bp was part of a broader search for opportunities to enhance its gas and liquefied natural gas (LNG) portfolio. Credit: Marco Curaba/Shutterstock.

Abu Dhabi National Oil Company (ADNOC) recently considered acquiring British oil and gas major bp, reported Reuters, citing undisclosed sources.  

The talks did not advance as ADNOC concluded that bp did not align with its strategic objectives, the sources said, adding that the potential acquisition was also influenced by political factors.  

Despite bp’s market valuation of £88bn ($110.16bn), the company has struggled to keep pace with its peers, prompting speculation about its vulnerability to a takeover. 

US oil companies are currently experiencing significant consolidation, a trend not mirrored by their European counterparts.  

bp’s shift towards renewable energy sources and reduction in fossil fuel production has been met with investor scepticism, contrasting with the strategies of rivals such as Shell, Exxon and Chevron. 

In response to investor concerns, bp revised its energy transition strategy in February 2023, scaling back some of its more ambitious goals.  

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Meanwhile, ADNOC, led by CEO Sultan al-Jaber, has been expanding its oil and gas production capacities to position itself alongside the world’s leading oil majors. 

Although ADNOC is not listed on the stock market, its size makes it a credible buyer for companies like bp.  

According to the sources, direct conversations between ADNOC and bp took place in recent months, with ADNOC also consulting investment banks about the potential acquisition. 

Exploring various options, ADNOC considered acquiring a significant stake in bp.  

ADNOC’s interest in bp was part of a broader search for opportunities to enhance its LNG portfolio through international partnerships.  

However, both ADNOC and bp, as well as Britain’s business ministry, declined to comment on these discussions. 

In February this year, ADNOC and bp announced the formation of a joint venture in Egypt aimed at advancing gas development, with bp holding a 51% share and ADNOC owning the remaining 49% stake.