Abu Dhabi invests $1 billion in UK oil fields

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.

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(Writing by Andrew Torchia; Editing by Erica Billingham)