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BP sells deep-water assets for US$5.6b
Source: Agencies |
September 11, 2012, Tuesday
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Print Edition
Print Edition
BP is selling some deep-water assets in the Gulf of Mexico to Plains Exploration & Production Co for US$5.55 billion, a big step in BP's drive to cover the cost of its oil well blowout in the Gulf two years ago and concentrate investment elsewhere.
BP is selling its interests in three of the assets it operates: the Marlin hub, Horn Mountain and Holstein. The deal also includes BP's stakes in two non-operated assets, Ram Powell and Diana Hoover.
Plains is also buying the 50 percent interest in the Holstein field that BP doesn't own from Shell Offshore Inc for US$560 million. Both deals, representing production of 59,500 barrels of oil equivalent per day, may close by the end of the year.
"While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP's global exploration and production portfolio and we intend to continue investing at least US$4 billion there annually over the next decade," said BP CEO Bob Dudley yesterday.
BP said it expects to dispose of US$38 billion in assets between 2010 and 2013; total sales agreed so far are over US$32 billion. The company will concentrate future activity and investment in the Gulf of Mexico on growth opportunities around its four major operated production hubs and three non-operated production hubs in the deep water, as well as on significant exploration and appraisal opportunities in the Paleogene and elsewhere.
BP will continue to operate four major production platforms in the region. It will also hold on to three other hubs which it doesn't operate.
BP is selling its interests in three of the assets it operates: the Marlin hub, Horn Mountain and Holstein. The deal also includes BP's stakes in two non-operated assets, Ram Powell and Diana Hoover.
Plains is also buying the 50 percent interest in the Holstein field that BP doesn't own from Shell Offshore Inc for US$560 million. Both deals, representing production of 59,500 barrels of oil equivalent per day, may close by the end of the year.
"While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP's global exploration and production portfolio and we intend to continue investing at least US$4 billion there annually over the next decade," said BP CEO Bob Dudley yesterday.
BP said it expects to dispose of US$38 billion in assets between 2010 and 2013; total sales agreed so far are over US$32 billion. The company will concentrate future activity and investment in the Gulf of Mexico on growth opportunities around its four major operated production hubs and three non-operated production hubs in the deep water, as well as on significant exploration and appraisal opportunities in the Paleogene and elsewhere.
BP will continue to operate four major production platforms in the region. It will also hold on to three other hubs which it doesn't operate.
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