BP p.l.c. (NYSE:BP) shares are trading higher after United Arab Emirates’ state-owned oil company Abu Dhabi National Oil Company (ADNOC) considered buying the company.

However, this deal did not progress beyond preliminary discussions, reported Reuters, citing people familiar with the matter.

ADNOC decided that BP would not be the right fit for its strategy, and political considerations also weighed on the potential move.

As per the report, BP has underperformed its competitors for years, which investors and analysts say has made it a potential takeover target.

In recent months, the Emirati giant and BP have spoken directly, and ADNOC has also sought advice from investment banks on a potential deal, as per the report.

As per the report, ADNOC also considered all options when looking at BP, including buying a big stake.

Related: Geopolitical Unrest Halts BP, Adnoc’s $2B Bid For Israeli Gas Firm

This week, BP stated that it expects upstream production in first quarter of 2024 to be higher than the prior quarter, with production projected to be higher in oil production & operations and slightly .

Investors can gain exposure to the stock via Direxion Hydrogen ETF (NYSE:HJEN) and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (NYSE:EIPX).

Price Action: BP shares are up 1.03% at $40.06 premarket on the last check Friday.