RNS Number : 1924S
28 November 2012

press release

28 November, 2012


                       ASSETS TO TAQA FOR $1.1 BILLION

BP announced today that  it has agreed  to sell its interests  in a number  of 
central North Sea oil and  gas fields to TAQA  for $1.058 billion plus  future 
payments which, dependent on  oil price and  production, BP currently  expects 
will exceed $250 million. The 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.

The sale is subject to third party and regulatory approvals and the  companies 
currently expect the sale to complete in 2Q 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, said:  "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 $10 billion over five years."

With today's announcement, BP has now  entered into agreements to sell  assets 
with a value of around $37 billion since the beginning of 2010. BP expects  to 
divest assets with a total  value of $38 billion between  2010 and 2013 as  it 
focuses its business around the world  on its strengths and opportunities  for 

Jefferies acted as financial adviser to BP in relation to this transaction.

Notes to Editors:

The base consideration is  $1.058 billion of which  a deposit of $632  million 
has been paid. The anticipated future payments of $250 million are expected to
be realized over three years.

BP in the North Sea:

· BP  is a  major  investor in  the  North Sea  (UK  and Norway)  with  an 
extensive portfolio of production from existing reservoirs, new projects under
development, and growth potential in undeveloped resources.

· BP's annual North Sea production averages around 200,000 barrels of  oil 
equivalent per day and the company has over three billion barrels of estimated
proven and contingent resource available in the region.

· The  company employs  over 3,000  staff in  its North  Sea business  and 
operates around 30 oil and gas fields.

· BP-operated producing assets  include Clair, Schiehallion, Foinaven  and 
Magnus in the Shetland area; Andrew, ETAP and Bruce in the UK's central  North 
Sea; and Valhall, Ula, and Hod in Norway. The company also operates the Sullom
Voe Terminal in Shetland, the CATS  gas terminal in Teesside, and the  Forties 
Pipeline System and Kinneil terminal.

· BP plans to invest  $10 billion (c £6.7billion)  net over the next  five 
years in the North Sea - including major projects in the UK and in Norway.

· Three major  projects are currently  underway in the  UK - Clair  Ridge, 
Quad 204 (Schiehallion),  and Kinnoull -  and two  in Norway -  Skarv and  the 
Valhall Redevelopment.

· BP's strategy to focus in the North Sea has already included the sale of
the Wytch Farm oil field  in Dorset, the Southern Gas  Assets and the sale  of 
its non-operated stakes in the Draugen,  Alba and Britannia fields. The  total 
value of those assets sold, including this deal, is around $2.8 billion.

Brae complex, Braemar, Maclure, Harding, Devenick

· BP has an equity interest of 27.7% in the Marathon-operated Brae fields,
a collection of  oil and gas  fields --  South, Central, North  and West  Brae 
--which started production in the 1970s, and 33.21% in the  Marathon-operated 
East Brae field and production facility.

· Braemar is a subsea tie-back to the Marathon-operated East Brae platform
in which BP owns a 52% interest.

· The Maclure oil field started production in 2002 and was developed via a
single  subsea  gas-lifted  well  tied  back  to  Maersk's  Gryphon   Floating 
Production Storage and Offloading vessel. BP is the operator and owns 37.04%.

· Harding has been  a quality asset  for BP, but it  is isolated from  the 
rest of BP's portfolio and will require significant investment and resource to
develop its gas reserves. BP's  major capital investment programme is  focused 
on other assets from  which it can  extract greater value  in the central  and 
northern North Sea, west of Shetland and Norway. BP owns 70% of Harding and is
the operator.

· Devenick, which was brought on-stream in September, is a subsea tie-back
to the East Brae platform.  Given the inclusion of  BP's interest in Braes  in 
this deal it makes strategic sense to include Devenick in the sale package. BP
owns 88.7% of Devenick and is the operator.

· The base consideration will be allocated 50% to plant and machinery  for 
tax purposes

Further information:

· BP Aberdeen press office: 01224 83 2030

· BP London press office: 020 7496 4076

                                   - ENDS -

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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