LONDON – BP has agreed to sell its interests in many oil and gas fields in the deepwater US Gulf of Mexico to Plains Exploration and Production Co. for $5.55 billion.
The deal includes its interests in three BP-operated assets: the Marlin hub, comprised of the Marlin, Dorado, and King fields; Horn Mountain (100%), and Holstein (50%). The deal also includes BP’s stake in two non-operated assets: Ram Powell (31%), and Diana Hoover (33.33%).
Bob Dudley, BP group chief executive, said: “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 $4 billion there annually over the next decade.
“This sale, as with previous divestments, is consistent with our strategy of playing to our strengths as a company and positioning us for long-term growth. In the Gulf of Mexico that means focusing future investments on our strong set of producing assets and promising exploration prospects.”
Subject to regulatory approvals, certain pre-emption rights, and customary post-closing adjustments, completion of the deal is expected by the end of 2012.