BP PLC (BP.) - BP TO SELL PACKAGE OF N SEA ASSETS TO TAQA
RNS Number : 1924S
28 November 2012
28 November, 2012
BP TO SELL PACKAGE OF CENTRAL NORTH SEA
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
· 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
· 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
· 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
MSCPGGPWGUPPUBR -0- Nov/28/2012 09:33 GMT
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