BP has agreed to sell its interests in its southern gas assets (SGA) in the UK North Sea to Perenco UK Ltd for $400 million in cash.
As it continues the active management of its business portfolios around the world, focusing on core activities and future growth, BP expects to divest assets with a total value of $38 billion between 2010 and the end of 2013. Including the agreement to sell SGA, the company has now announced divestments with an expected value totaling approximately $23 billion.
Perenco has made an initial payment to BP of $100 million in cash and the remaining $300 million will be paid on completion, which is expected before the end of 2012. A further $10 million may be paid in the future contingent on the prevailing gas prices.
"Together with our partners BP is currently progressing projects in the UK offshore that will involve a total investment of £10 billion over the next five years - representing the highest level of annual investment BP has ever made into the UK's offshore industry. Actively managing our portfolio allows us to concentrate our people, capabilities and investment on sustaining BP's business in the North Sea for the long term," said Garlick.
BP initially announced its intention to sell SGA in February 2011. The agreement with Perenco includes:
- The Cleeton stream fields (including Wollaston, Whittle, Ravenspurn North, Ravenspurn South)
- The West Sole stream fields (including West Sole, Hyde, Hoton, Newsham)
- The Amethyst field
- Dimlington terminal
- Hessle office
SGA manned platforms: West Sole Alpha; Ravenspurn North; and Cleeton.
SGA normally unmanned installations (NUIs): Apollo/Minerva (M1); Mercury; Neptune; Wollaston & Whittle; West Sole B & C; Ravenspurn South; Amethyst (C1D, A1D, A2D & B1D); Hyde; Hoton; and Newsham.
The consideration will be allocated 70% to plant and machinery.
Current net BP production from the SGA assets totals some 25,000 barrels of oil equivalent a day (boed).
Completion of the sale is subject to a number of third party and regulatory approvals. It is expected that impacted BP employees working for SGA will transfer with the asset to Perenco.