BP sells North Sea assets for $162 million
17 Feb 2003
BP announced recently that it has agreed to sell cerain Southern North Sea gas production assets to Perenco UK Limited for $162 million in cash.
The sale includes BP's share in 14 gas fields including Indefatigable, East Leman, Davy, Trent, Tyne, Pickerill and Waveney, together with associated pipelines and onshore processing facilities including the Bacton terminal.
Perenco is said to have indicated a desire to operate these assets, subject to government and licence partner approvals.
BP's share of combined proved gas reserves for these fields is approximately 274 billion cubic feet and BP's share of production is around 150 million cubic feet per day or about 26,000 barrels a day oil equivalent. BP's overall current production from the UK North Sea is approximately 750,000 barrels a day.
BP said in a statement that the sale would improve returns on its upstream portfolio by reducing operating costs and freeing up capital for investment in other projects.
The sale has an effective date of January 1, 2003 and is subject to UK regulatory consent and other approvals.
