BP shares claw back 2.8%, still down 5.7% for the week as Hormuz fears hit market
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BP stock drops as oil retreats despite Abu Dhabi gas agreement

June 25, 2026
by

London, June 25, 2026, 11:09 BST

  • BP dropped 1.4% to around 473 pence, while the FTSE 100 was up 0.3%.
  • Shares have lagged the index by around 5.7 points over the last two sessions
  • Bab stake figures work out to around 33,000 boe/d on a rough pro-rata split

BP PLC slipped 1.4% to around 473 pence in late-morning trading in London on Thursday. The FTSE 100 added 0.3%.

BP shares are down 5.1% since the close on Tuesday, trailing the FTSE 100, which is up 0.6% for the same stretch. BP lagged the index by about 5.7 percentage points. On Wednesday BP fell 3.73% while the FTSE edged up 0.31%.

BP has picked up a 10% stake in Abu Dhabi’s Bab Gas Cap concession, marking its first upstream gas deal in the emirate. The concession, covering three reservoirs, is targeting production of up to 1.5 billion cubic feet of gas per day. ADNOC holds 60%. BP will take the asset lead for the Bab oilfield.

BP’s gas share comes to 150 million cubic feet per day on a straight 10% pro-rata split. With the U.S. Energy Information Administration’s standard conversion of 6,000 cubic feet to one barrel of oil equivalent, BP’s gas is about 25,000 boe/d. A 2024 engineering brief put Bab’s condensate at 80,000 barrels per day, so BP would pick up another 8,000 bpd condensate if the same share holds. Add the gas and condensate, and BP’s rough total would be 33,000 boe/d, which is about 1.4% of its 2.3 million boe/d output in the first quarter. This figure doesn’t factor in contract terms, ramp-up, or downtime.

BP hasn’t given details on the project’s cost, its capital stake or when it expects first gas. Without those numbers, there’s no way to assign cash-flow value. BP reported net debt of $25.3 billion for the first quarter, with operating cash flow at $2.9 billion.

Brent dropped 1.7% to $72.46 a barrel, hitting the lowest mark since February 27. The benchmark has now fallen around 6% since Tuesday’s close. Over the last 24 hours, at least 20 million barrels moved out of the Strait of Hormuz. “Most of the increase in flows from the Gulf is outbound — ships exiting the Strait,” UBS analyst Giovanni Staunovo said. Reuters

Brent’s second month flipped above the prompt contract for the first time since the war as discounts hit physical crude cargoes, pointing to more barrels in the market. Tim Waterer, chief market analyst at KCM Trade, said Iranian production and exports might climb “weeks rather than months” if the sanctions stay loose. Reuters

TotalEnergies SE , a 10% stakeholder in Bab, called the concession “low-cost, low-emissions resources with significant production growth potential.” ADNOC’s gas business had previously indicated a final investment decision in 2026. The statements on Thursday did not specify when first gas would come. World Oil

Marcin Frąckiewicz

Marcin Frąckiewicz is the CEO of TS2 Space and a longtime technology entrepreneur focused on telecommunications, satellite communications and digital innovation. A graduate of the Warsaw School of Economics (SGH), he writes about space technology, artificial intelligence and publicly traded technology companies. His analysis covers major market trends, emerging technologies and the businesses shaping the future of the global economy.

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