BP to sell package of central North Sea assets to TAQA for $1.1 Billion
28 November 2012
BP announced on November 28 that it has agreed to sell its interests in the BP-operated Maclure, Harding and Devenick fields and non-operated interests in the Brae complex of fields and the Braemar field to TAQA (Abu Dhabi National Energy Co) for $1.058 billion plus future payments which, dependent on oil price and production, BP currently expects will exceed $250 million.
BP's Harding field is one of a number of assets in the North Sea to be sold to TAQA
The sale is subject to third party and regulatory approvals and the companies currently expect the sale to complete in 2Q 2013.
Bob Dudley, BP group chief executive, said: “This transaction is in line with BP’s strategy to focus on a smaller number of higher-value assets with long-term growth potential and to continue the simplification of our portfolio with a further reduction of operated infrastructure and wells.”
Trevor Garlick, regional president, North Sea, said: “It has made strategic sense for BP and for the buyer to combine our non-operated interests in the Braes and Braemar fields with Harding, Maclure and Devenick. BP continues with a focused investment programme in the UK and Norway, which includes planned capital spending of $10 billion over five years.”
With today’s announcement, BP has now entered into agreements to sell assets with a value of around $37 billion since the beginning of 2010. BP expects to divest assets with a total value of $38 billion between 2010 and 2013 as it focuses its business around the world on its strengths and opportunities for growth.
BP’s annual North Sea production averages around 200,000 barrels of oil equivalent per day and the company has over three billion barrels of estimated proven and contingent resource available in the region.
The company employs over 3,000 staff in its North Sea business and operates around 30 oil and gas fields.
BP-operated producing assets include Clair, Schiehallion, Foinaven and Magnus in the Shetland area; Andrew, ETAP and Bruce in the UK’s central North Sea; and Valhall, Ula, and Hod in Norway. The company also operates the Sullom Voe Terminal in Shetland, the CATS gas terminal in Teesside, and the Forties Pipeline System and Kinneil terminal.
BP plans to invest $10 billion (c £6.7billion) net over the next five years in the North Sea – including major projects in the UK and in Norway.
Three major projects are currently underway in the UK – Clair Ridge, Quad 204 (Schiehallion), and Kinnoull – and two in Norway – Skarv and the Valhall Redevelopment.
BP’s strategy to focus in the North Sea has already included the sale of the Wytch Farm oil field in Dorset, the Southern Gas Assets and the sale of its non-operated stakes in the Draugen, Alba and Britannia fields. The total value of those assets sold, including this deal, is around $2.8 billion.
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