BP to sell selected UK assets

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Feb. 24 -- BP PLC said it intends to sell several of its interests in the UK, including the Wytch Farm onshore oil field and all of its operated gas fields in the southern North Sea, including the Dimlington terminal and associated pipeline systems.

“The assets we intend to divest are of high value but find it difficult to compete for capital and resource within our North Sea portfolio,” said Trevor Garlick, regional president, BP North Sea.

Garlick noted that BP already has four other major new field development projects under way in the region: Clair Ridge, Quad 204 (Schiehallion), Devenick and Kinnoull in the UK, along with Skarv and Valhall redevelopment in Norway.

BP said the intended divestments will allow it to focus resources and investment on its diverse assets in the central North Sea, northern North Sea, West of Shetland and Norway, as well as on successful delivery of its new major projects.

BP aims to complete the divestments at yearend, subject to receipt of suitable offers and regulatory and third party approvals.

In Wytch Farm, the assets being offered for sale comprises all of BP’s equity in the development, including 67.81% operated interest in the Wytch Farm oil field (covering the Frome, Bridport, and Sherwood reservoirs); 67.5% operated interest in the Beacon discovery; 67.5% operated interest in the Wareham oil field; and 100% operated interest in the Kimmeridge oil field.

In the southern North Sea, the equity includes BP’s interests in the Cleeton stream fields, ranging from 53.5% to 100%; BP’s 100% interest in the West Sole stream fields; BP’s 83.65% interest in the Amethyst field, and BP’s 100% interest in the related infrastructure, including the Cleeton field, the Southern North Sea Pipeline System and the Dimlington terminal.

Earlier this month, BP said it is seeking buyers for its Texas City, Tex., refinery and the Carson, Calif., refinery near Los Angeles, as part of a strategy in which BP plans to reshape its downstream business, slashing in half its US refining capacity (OGJ Online, Feb. 7, 2011).

Contact Eric Watkins at hippalus@yahoo.com.

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