BP raises £250m from sale of its North Sea gas assets

City A.M. Reporter
OIL company BP said yesterday it had agreed to sell its gas assets in the southern North Sea to Perenco UK for $400m (£250.6m) as part of a $38bn disposal programme to pay for the Gulf of Mexico oil spill.

BP, Europe’s second-largest oil company by market value, has now agreed deals to raise $23bn from disposals since 2010 as it works towards its target for proceeds of $38bn by the end of 2013.

BP said in February it estimates the total cost of the US’s worst-ever offshore oil spill has risen to $43bn due to higher costs for shoreline clean up. The company said the sale of the southern gas assets (SGA) was part of its plan to develop a more focused North Sea business in the UK and Norway.

“Perenco is committed to investing in and developing SGA beyond BP’s plans, ultimately providing a longer-term future for the assets and the people who work there,” said Trevor Garlick, regional president for BP North Sea.

Perenco will make an initial payment of $100m with the remaining $300m due to be paid on completion, which is expected before the end of 2012.

Shares in BP fell more than two per cent to 471.4p yesterday, broadly in line with other energy firms in the FTSE 100.