Abu Dhabi Signals Reluctance To Buy Into BP - Report

11th Jul 2010 14:18

DUBAI (Zawya Dow Jones)--Abu Dhabi is reluctant to buy into BP PLC, whose chief executive officer met with officials in the emirate last week as the U.K. firm is battling a massive oil spill in the Gulf of Mexico, Middle East Economic Survey reports in its latest issue to be published July 12. "MEES understands that Abu Dhabi has signaled a reluctance to buy into BP on two counts," the weekly reports. MEES cites sources close to Abu Dhabi investment funds as saying that "they are already in court over a Citibank investment and that the move would be too politically charged and there are too many unknowns." BP CEO Tony Hayward last week met with Abu Dhabi officials including Crown Prince Mohammed bin Zayed Al Nahyan during a visit to the oil-rich emirate. Hayward would be happy to see Abu Dhabi buy a stake of up to 10% in the oil major, a person with knowledge of the meeting told Zawya Dow Jones at the time. According to MEES, Abu Dhabi investment funds may be "willing to monetize some of BP's holdings in the region, provided that they do not run into problems with the U.S. Department of Justice (DOJ), which has formally requested that BP advise them of any asset disposals or other large transactions." "This could prove difficult, because it involves the disclosure of market sensitive information. BP has already missed a voluntary deadline for providing DOJ with such disclosure, MEES understands," the weekly adds. News Web site: www.mees.com -By Dubai Bureau, Dow Jones Newswires; +9714 446-1686; [email protected] Copyright (c) 2010 Dow Jones & Co. (END) Dow Jones Newswires July 11, 2010 09:18 ET (13:18 GMT)