BP has agreed the sale of its 34.3 per cent interest in the Yacheng gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for 308m dollars in cash.
BP expects the deal to close in the second half of 2013, subject to regulatory, CNOOC (China National Offshore Oil Corporation) and third party approvals.
"This sale is part of BP's ongoing global portfolio optimization," said Chen Liming, President of BP China. "BP remains committed to working with China to contribute its deep expertise and oil and gas supply options in this important emerging market."
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The sale takes BP's total divestments announced since 2010 to $37.8bn.
Yacheng 13-1 field is the largest offshore natural gas producing field in China. Commercial production at Yacheng started in 1996.
BP operated the field until January 1st 2004, when it handed operatorship to its major project partner CNOOC.
The field currently supplies natural gas for power generation to Castle Peak Company in Hong Kong via a 780-kilometre pipeline. Additional natural gas, condensate and LPG are sold to customers on Hainan Island.
Following completion, the Yacheng partnership will consist of CNOOC (51%), and Kuwait Foreign Petroleum Exploration Company (49%).
BP was awarded interests in the 42/05 and 43/11 deepwater blocks in the South China Sea in 2010 and 2012. These blocks are currently in the exploration phase.
BP's share price was down 0.10% to 428p at 10:59 on Wednesday morning.
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