BP nets US$ 400 million from UK asset sales

BP has agreed on a sale of its gas assets in the UK North Sea to Perenco in a deal worth US$ 400 million.

The sale comes as part of BP’s continuing divestment programme, which is scheduled to raise approximately US$ 38 billion by the end of 2013. The company reports that so far, it has made divestments worth US$ 23 billion in total. BP has proposed that the funds will be used to allow it to focus on core assets and growth promotion.

The buyer of the Southern Gas Assets (SGA), Perenco, has paid US$ 100 million up front, with a further US$ 300 million to be paid on the completion of the deal, which remains subject to regulatory approvals.

It is also believed that BP employees working on the SGA will transfer to Perenco upon completion of the deal.

In terms of production, the SGA deliver approximately 25 000 bpd.

BP’s regional predisdent for the North Sea, Trevor Garlick, said, “Together with our partners BP is currently progressing projects in the UK offshore that will involve a total investment of £10 billion over the next five years – representing the highest level of annual investment BP has ever made into the UK’s offshore industry. Actively managing our portfolio allows us to concentrate our people, capabilities and investment on sustaining BP’s business in the North Sea for the long term.”

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