logo
  Join        Login             Stock Quote

BP (BP) To Sell Stake In North Sea Gas Field For $288M

 December 17, 2012 07:05 AM
 


(By Balachander) BP Plc (NYSE: BP) has agreed to sell its interest in the Sean gas field in the UK North Sea to SSE Plc for $288 million in cash.

U.K.-based BP, the oil and gas giant, said the divestment was a part of its strategy to market its stakes in non-operated North Sea assets.

The sale comprises BP's non-operated 50 percent stake in Sean gas field, which is operated by Shell.

BP's current net production from Sean is around 18,000 barrels of oil equivalent per day.

"The divestment of BP's interest in the non-core, non-operated Sean field is consistent with our strategy of focusing on high value assets with long term growth potential," said Trevor Garlick, regional president of BP North Sea.

[Related -Call Options Active in Yahoo! Inc. (YHOO)and BP plc (ADR) (BP)]

Meanwhile, SSE - formerly Scottish and Southern Energy Plc - expects total net proven and probable (2P) reserves to be roughly 1.7 billion therms over the life of the field.

In the last two weeks BP has closed the sale of its non-operating stakes in the Alba and Britannia fields to Mitsui and the Draugen field in Norway to Shell.

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.

"We have made clear that SSE is proactively seeking new opportunities to increase our presence in upstream gas sector where assets can be acquired for a fair price, and that is exactly what this deal represents," said David Franklin, SSE's Managing Director Energy Portfolio Management. 

[Related -7 Deep-Value Energy Leaders With 68% Upside]

The deal is expected to be completed during the first half of 2013.

U.S.-listed shares of BP closed at $41.39 on Friday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageIntegrated Device Technology Inc. (IDTI) Q1 Earnings Preview: Another Beat and Pop?

Integrated Device Technology Inc. (NASDAQ:IDTI) will issue first quarter 2015 financial results on July 28, read on...

article imageHerbalife Ltd. (NYSE:HLF) Q2 Earnings Preview: The Potential To Shock?

Herbalife Ltd. (NYSE:HLF) will release its second quarter 2014 financial results after the close of trading read on...

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.