BP divests Gulf of Mexico fields worth £3.5bn

UK OIL major BP yesterday said it plans to sell interests in the Gulf of Mexico to Plains Exploration & Production (PXP) for $5.5bn (£3.44bn).

The sale is part of a previously-announced plan to divest the assets and position its Gulf portfolio for long-term growth.

Texan-headquartered PXP has bought interests in a number of fields in the Gulf, including the Marlin hub, Horn Mountain and a 50 per cent stake in Holstein, as well as BP’s stake in two non-operated assets – Ram Powell and Diana Hoover.

The deal should close by the end of the year.

The properties acquired by PXP were producing an estimated 59,500 barrels of oil equivalent net per day at the end of July.

BP is around two-thirds of the way through its $38bn divestment programme, as it focuses its business around the world on its strengths and opportunities for growth.

After the sale of the fields, BP will still operate four production platforms in the region. The energy company plans on spending $4bn a year in the Gulf of Mexico over the next decade, adding that the Gulf remained a “key part of BP’s global expansion and production portfolio”.

Separately, Anglo-Dutch oil behemoth Shell announced it is to sell its 50 per cent working interest in the Holstein field to PXP for $560m.

BP’s shares closed 0.71 per cent up at 437.8p yesterday.