BP has agreed to sell its stake in a number of oil and gas fields in the deepwater Gulf of Mexico to Texas-based Plains Exploration and Production Company for £3.47bn.
The sale comes two years after the Deepwater Horizon disaster in the Gulf that saw BP hit with a multi-billion dollar fine for poor handling of one of the world’s worst oil spills.
At the end of July 2012, the acquired fields were producing an estimated 59,500 barrels of oil equivalent every day. It has taken over the hub, comprised of the Marlin, Dorado and King fields), Horn Mountain and BP’s 50% holding in Holstein.
The company commented that it believes production potential exists in the currently producing reservoirs through numerous low risk, high-margin drilling and well workover opportunities.
BP expects to make $23.73bn from the sale of assets between 2010 and 2013.
“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 £2.5bn each year over the next decade,” said Bob Dudley, BP’s chief executive.
On completion of the transaction, BP will continue to operate four large production platforms in the region, which produce from some of the largest deepwater oil and gas fields ever discovered.
This transaction is effective as of 1 October and will be finalised by the end of the year.