BP has sold 25% of its North Sea Magnus oilfield, a 25% stake in various pipelines and a 3% stake in the Sullom Voe Terminal to oil and gas production company EnQuest for $85 million (£68m).
The Magnus oilfield, which is one of the largest in the North Sea, is located 160 kilometres north east of the Shetland Islands.
According to BP, EnQuest has an option to purchase the remaining 75% interest in Magnus, a further 9% interest in the Sullom Voe Terminal and the remainder of BP’s interests in the associated pipelines for a cost of $300 million (£240m).
This option is exercisable between 1 July 2018 and 15 Jan 2019, BP said.
BP group chief executive Bob Dudley said: “EnQuest’s experience of investing in and extending the life of mature assets in the North Sea makes them a natural operator of Magnus and Sullom Voe in this later phase of their life.
“We believe this will enable them to prolong the life of the assets, benefiting the region and creating additional value for both EnQuest and BP shareholders.”
If EnQuest were to purchase the remainder of the assets, BP would retain 50% of net cash flows from them, up to a limit of $1 billion, a company statement said.
BP currently owns a 12% total stake in the Sullom Voe Terminal.
“Sullom Voe and Magnus have been great businesses for BP, but to maximise the economic life of these important assets, we believe this deal will offer them a better long-term future,” added Mark Thomas, BP North Sea regional president.
The deal, which is subject to partner, regulatory and other third party approvals, is expected to be completed later this year.