Abu Dhabi National Energy Co (Taqa), majority-owned by the Abu Dhabi government, is investing over $1 billion in British North Sea oil fields owned by BP Plc, the companies said on Wednesday.
The agreement may be presented as a diplomatic success by British Prime Minister David Cameron, who visited the United Arab Emirates early this month to court trade and investment from the oil-rich UAE.
During his visit, the two countries announced they would form a defense and industrial partnership involving close cooperation around the Typhoon fighter jet, built by Britain's BAE Systems. The UAE is keen to develop its aerospace and defense industries.
Earlier this year, there were signs of tension in the two countries' ties; BP was shut out of pre-qualification bidding to develop Abu Dhabi's largest onshore oil fields. The company's chief executive said this month that he still hoped to be included in the process.