LONDON – BP announced the sale of its 34.3% interest in the Yacheng gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $308 million cash. Subject to regulatory, CNOOC and third party approvals, BP expects the deal to close in the second half of 2013.
Commercial production at Yacheng started in 1996. BP operated the field until January 1, 2004, when it handed operatorship to its major project partner CNOOC.
Yacheng 13-1, the largest offshore natural gas field in China, is located in about 90 m (295 ft) of water 100 km (62 mi) south of Hainan Island.
Upon completion of the deal, the Yacheng partnership will consist of CNOOC (51%), and KUFPEC (49%).
BP has divested nearly $38 billion in assets since the 2010 Macondo incident in the Gulf of Mexico.