Algerian interests sold
23 Jun 2003
BP has agreed in principle to sell a portion of its Algerian interests to Statoil for $740 million in cash.
The sale comprises 50% of BP's stake in the 'In Amenas' gas condensate project and 49% of BP's interest in the 'In Salah' gas project.
Following the sale, BP and Statoil will jointly operate the projects with Sonatrach, the Algerian state oil and gas company.
The 'In Amenas' project, the largest wet gas joint development project in Algeria, is located approximately 850 kilometres south of Hassi Messaoud, in the south-east of the country. The project includes development of four primary gas fields and gas gathering and processing facilities.
The 'In Salah' project, located some 1200 kilometres south of Algiers, includes development of seven proven gas fields, gas processing facilities at Krechba and pipeline infrastructure stretching 579 kilometres north to Hassi R'Mel.
The 'In Salah and 'In Amenas' developments are expected to achieve first gas in 2004 and 2005 respectively.
Subject to Sonatrach and Algerian regulatory consent and other approvals, the sale is expected to be completed by the end of 2003.
