Sheikh Mohammed of Abu Dhabi Confirms Interest in BP Oil Shares

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(ABU DHABI, UAE) -- Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces told Bloomberg yesterday that Abu Dhabi may be interested in an investment in BP. "We are still thinking about it," Sheikh Mohammed said. "We are looking across the board. We have been partners with BP for years."

It was the first confirmation since the visit of Tony Hayward, CEO of BP, to Abu Dhabi last week that a deal was being considered. At the time, Hayward described his meeting with Sheikh Mohammed as "very good." A BP spokesman said yesterday that BP "would welcome any investor buying or increasing their stake," but did not name Abu Dhabi or any other potential investor.

BP lost half its value in the aftermath of the worst oil spill in US history that has disrupted Florida's multi-billion dollar tourism industry this summer. Its shares jumped more than 5 percent after Sheikh Mohammed's remarks but finished the day only slightly up on the New York Stock Exchange after being up 2.8 percent in London.

BP has been a partner in oil exploration and extraction with the Abu Dhabi National Oil Company (ADNOC) since 1939. Its contracts expire in the next few years, and speculation has been that any deal for additional BP shares would include a renewal of contracts with ADNOC.

See related Real Estate Channel postings:

• BP's Tony Hayward Makes Flying Visit to Abu Dhabi
• 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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