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
Apache Corp                      $7 Billion

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

Venezuela, Vietnam fields        $1.8 billion

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.)


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

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

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

OAO Rosneft stake                  $944 million

Algeria fields                     $3 billion

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.