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Abu Dhabi is reluctant to invest in BP, a report said, only days after the British company's chief was thought to have sought investment from sovereign wealth funds on a visit to the Gulf state. (REUTERS)
Abu Dhabi is reluctant to invest in BP, a report said, only days after the British company's chief was thought to have sought investment from sovereign wealth funds on a visit to the Gulf state.
Citing sources, the Middle East Economic Survey said it "understands that Abu Dhabi has signaled a reluctance to buy into BP," in its latest edition to be published on Monday.
"Sources close to Abu Dhabi investment funds said that they are already in court over a Citigroup investment and that the move would be too politically charged and there are too many unknowns," the MEES newsletter said.
Abu Dhabi Investment Authority (Adia) became one of Citigroup's biggest investors in 2007 with a $7.5-billion cash injection, but The National newspaper reported in December that Adia filed a suit accusing the US bank of fraud.
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 US Department of Justice," which has requested it be kept informed of BP asset disposals and "other large transactions," MEES said.
Tony Hayward, BP's chief executive, was in Abu Dhabi on Wednesday as speculation swirled that the energy British giant is seeking support from sovereign wealth funds following the Gulf of Mexico oil disaster.
Dow Jones Newswires said that Hayward held talks with General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and discussed the possibility of the emirate taking a 10-per cent equity stake in BP.
MEES said Hayward also met with officials from Adia and the Abu Dhabi National Oil Company during his visit.
Adia is considered the world's largest sovereign wealth fund with assets of more than $600 billion.
The BP-leased Deepwater Horizon rig sank on April 22, two days after an explosion that killed 11 workers, unleashing the worst environmental disaster in US history.
The company has now spent about $3.12 billion on the cost of the spill response, containment, relief well drilling, grants to Gulf of Mexico states, claims paid and federal costs.
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