BP sells Draugen interest to Shell for $240M

BP has agreed to sell its 18.36% non-operated interest in the Draugen field in the Norwegian Sea to AS Norske Shell for $240 million in cash.

The Draugen field is in block 6407/9 in the Haltenbanken area of the Norwegian Sea, about 140 kilometers from Kristiansund, Norway, at a sea depth of 250 meters.

Net BP production from Draugen, which is operated by Shell, averages some 6,000 barrels per day. Completion of the deal is anticipated by the end of 2012, subject to regulatory approval.

BP Norway has 15 licenses, and is the operator of 11 of these. The fields currently in production and operated by BP Norway are Valhall, Hod, Ula and Tambar. BP is in the final stages of completing two major projects, the Skarv field and the re-development of the Valhall field. With the start-up of the two projects, BP expects its Norwegian production to more than double, to over 60,000 barrels of oil equivalent per day. The company also operates the Ula field.

The Draugen field sale puts BP close to its goal of raising $38 billion in divestments between 2010 and 2013. With recent deals such as its $5.55 billion sale of Gulf of Mexico assets to Plains Exploration & Production and its March 2012 sale of Southern Gas assets in the UK North Sea to Perenco for $400 million, BP has raised nearly $33 billion to date.

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