BP announces further sale of assets

published 28 November 2012

Oil giant BP has agreed to the sale of its interests in a number of central North Sea oil and gas fields to TAQA, putting the total value of the assets to be sold at around 37bn dollars since the beginning of 2010.

This most recent sale totals $1.058bn, in addition to future payments which, dependent on oil price and production, BP currently expects will exceed $250m.

Assets included in the sale are BP's interests in the BP-operated Maclure, Harding and Devenick fields and non-operated interests in the Brae complex of fields and the Braemar field.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The sale requires regulatory approval and is expected to be completed in the second quarter of 2013.

Bob Dudley, BP group chief executive, said: "This transaction is in line with BP's strategy to focus on a smaller number of higher-value assets with long-term growth potential and to continue the simplification of our portfolio with a further reduction of operated infrastructure and wells."

Trevor Garlick, regional president, North Sea, added: "It has made strategic sense for BP and for the buyer to combine our non-operated interests in the Braes and Braemar fields with Harding, Maclure and Devenick. BP continues with a focused investment programme in the UK and Norway, which includes planned capital spending of $10bn over five years."

The share price fell 0.3% to 429.95p by 10:15.