BP's Tony Hayward Makes Flying Visit to Abu Dhabi

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(ABU DHABI, UAE) -- BP's Tony Hayward flew in and out of Abu Dhabi yesterday, and neither the company nor the Abu Dhabi officials with whom he met have had much to say about the visit. A report in today's The National, the English language newspaper published in the UAE capital and owned by the Abu Dhabi government, says that Hayward met with Sheikh Mohammed bin Zayed All Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces as well as chairman of Mubadala Development, a strategic investment company owned by the Abu Dhabi government.

Four days ago The National reported that BP was looking for Middle East investors. Since then,  shares in the company have been rising, and they kept rising yesterday when the news of Hayward's trip to Abu Dhabi broke. There has been much speculation that BP shares would be a bargain for Mubadala Development or Abu Dhabi Investment Authority (ADIA), one of the world's richest sovereign wealth funds.

A BP spokesman quoted in The National said, "We can confirm he met with Sheikh Mohammed but cannot talk about what they discussed." The company has also said that it is not going to issue more shares which would seem to rule out taking on a major equity partner.

Sheikh Mohammed is a member of the Abu Dhabi Supreme Petroleum Council which is in effect the board of directors for the Abu Dhabi National Oil Company (ADNOC). BP holds two concessions from ADNOC, one for onshore oil, the other for offshore, that expire in 2014 and 2018. Possibly what BP is after is a deal that includes concession renewals and financing. For Abu Dhabi that could guarantee the continuation of a stable relationship.

See related REAL ESTATE CHANNEL postings:

• 56-Day BP Oil Spill Having Major Affect on Bankers, Developers and Hoteliers
• As Oil Spill Nears Florida Coast, Governor Charlie Crist Expected to Issue Blanket State of Emergency
• BP Oil Hands Florida $25 Million Check for Tourism Promotion

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