BP's Asset Sales So Far Rise to $11 Billion, May Do Another $19 Billion

BP Plc’s asset sales to raise cash to pay for the Gulf of Mexico oil spill rose to more than $11 billion, and the disposal of other fields slated for sale may net the company about $19 billion more.

BP said in July it would raise between $25 billion and $30 billion over 18 months from selling oil and gas production assets outside key regions for growth. Today, it announced the sale of $1.8 billion of fields in Vietnam and Venezuela to its Russian joint venture TNK-BP.

TNK-BP Deputy Chief Executive Officer Maxim Barsky said Oct. 6 that the company will get the first look at BP’s assets in Algeria, which may be worth about $3 billion. BP has considered divesting stakes in Alaska’s Prudhoe Bay and its 60 percent stake in Pan American Energy LLC, Argentina’s second- largest oil producer, according to people with knowledge of the matter.

Robert Dudley took over as chief executive officer on Oct. 1 from Tony Hayward after the company took responsibility for the worst oil spill in U.S. history. BP set aside $32.2 billion in the second quarter for the spill, and Chairman Carl-Henric Svanberg has said the value of the company’s asset base is at least $250 billion.

BP is said to have considered selling part of its interest in Alaska’s Prudhoe Bay, which produced on average 250,000 barrels a day in August. Earlier this year, China National Offshore Oil Corp. paid partner Bridas Corp. $3.1 billion for a 20 percent stake in Pan American, which has an output of about 100,000 barrels a day.

Following is a list of assets that BP has sold or may sell. The bidders are listed in parentheses underneath.

================================================================
Assets                             Value
================================================================
DEALS DONE
----------------------------------------------------------------
Apache Corp                      $7 Billion

Colombia fields                  $1.9 billion
(Ecopetrol SA, Talisman Energy Inc.)

Venezuela, Vietnam fields        $1.8 billion
(TNK-BP)

Malaysian Chemical Units         $363 million
(Petroliam Nasional Bhd.)

U.S. Pipelines, Cushing Storage  $289 million
(Magellan Midstream Partners LP)

Tubular Bells operatorship       $40 million
(Hess Corp.)

---------------------------------------------------------------
ON THE BLOCK
---------------------------------------------------------------

Prudhoe Bay stake                  $5 billion
(ConocoPhillips, Exxon Mobil Corp., Chevron Corp.)

Pan American stake                 $9 billion
(Cnooc Ltd., Bridas Corp.)

Pakistan                           $850 million
ING
(Oil & Gas Development Co.)

OAO Rosneft stake                  $944 million

Algeria fields                     $3 billion
(TNK-BP)

U.S. Tuscaloosa trend gas fields   NA
in Louisiana

Marketing operations in Namibia,   NA
Malawi, Tanzania, Zambia, Botswana
(Engen Ltd.)
===============================================================

(Sources:  Apache, Colombia, Malaysia, U.S. pipeline, Tubular
Bells, Vietnam and Venezuela deals -- BP statements; Prudhoe
Bay, Rosneft -- Bloomberg reporting and data; Pakistan -- ING
estimates; Pan-American -- calculated using the price Cnooc paid
for a stake; Algeria -- TNK-BP deputy CEO Maxim Barsky;
Louisiana fields, African retail -- statements from BP.)

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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