BP to sell £3.5bn of US Gulf assets

OIL giant BP yesterday said it has agreed to sell assets in the US Gulf of Mexico for £3.5bn to an American petroleum firm.

The deal with Plains Exploration & Production – which covers five oil and gas fields in the Gulf – will bring BP closer to its target of £23.7bn worth of disposals by the end of next year.

As part of BP’s plan to raise cash to pay the costs of the 2010 Deepwater Horizon disaster, it has entered into agreements to sell assets with a value of more than £20bn since the start of 2010.

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BP boss Bob Dudley reassured investors the sale did not signal a departure from the region. He said: “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 four billion US dollars there annually over the next decade.”

BP is selling its interests in three BP-operated assets, the Marlin hub, comprised of the Marlin, Dorado and King fields, Horn Mountain and Holstein. The deal also includes BP’s stake in two non-operated assets, Ram Powell and Diana Hoover. BP announced its intention to sell these non-strategic assets in May.

The assets were producing the equivalent of 59,500 barrels of oil a day in July, according to Texas-based Plains, which is also acquiring Royal Dutch Shell’s 50 per cent interest in the Holstein field for £350m. BP will continue to operate four large production platforms in the region. BP will also continue to hold interests in three non-operated hubs.

Last week, BP was dealt a blow as it emerged the US Department of Justice intends to prove gross negligence or wilful misconduct over the Gulf of Mexico oil disaster.