BP agrees to sell more Gulf assets

Oil giant BP today said it has agreed to sell assets in the US Gulf of Mexico for a total of $5.6bn to an American petroleum firm.

The deal with Plains Exploration & Production – which covers five oil and gas fields in the Gulf – will bring BP closer to its target of $38bn worth of disposals by the end of next year.

As part of BP’s plan to raise cash to pay the costs of the 2010 Deepwater Horizon disaster, it has entered into agreements to sell assets with a value of over $32bn since the start of 2010.

BP boss Bob Dudley reassured investors the sale did not signal a departure from the region.

He said: “While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP’s global exploration and production portfolio and we intend to continue investing at least four billion US dollars there annually over the next decade.”

BP is selling its interests in three BP-operated assets, the Marlin hub, comprised of the Marlin, Dorado and King fields, Horn Mountain and Holstein.

The deal also includes BP’s stake in two non-operated assets, Ram Powell and Diana Hoover. BP announced its intention to sell these non-strategic assets in May.

The assets were producing the equivalent of 59,500 barrels of oil a day in July, according to Texas-based Plains, which is also acquiring Royal Dutch Shell’s 50% interest in the Holstein field for $560m.

BP will continue to operate four large production platforms in the region - Thunder Horse, Atlantis, Mad Dog and Na Kika. BP will also continue to hold interests in three non-operated hubs – Mars, Ursa and Great White.

Last week, BP was dealt a blow as it emerged that the US Department of Justice intends to prove gross negligence or wilful misconduct over the Gulf of Mexico oil disaster.

BP said it will defend itself against the action, but the move killed hopes of an out-of-court settlement and has the potential to escalate the cost of the disaster.