BP to sell $1bn US gas fields to Linn Energy

Kasmira Jefford
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BP ANNOUNCED yesterday it has agreed to sell its stake in two US natural gas fields to Linn Energy for $1.03bn (£642m) as part of the oil giant’s $38bn disposal programme to help pay for the 2010 Gulf of Mexico oil spill.

The sale of its Jonah and Pinedale upstream operations in Wyoming will bring the total value of assets sold by BP since the start of 2010 to around $24bn.

BP said the properties have proven reserves equivalent to about 730bn cubic feet of gas, adding that upstream production operations elsewhere in Wyoming were not affected by the sale.

“This sale will allow us to realise the value of the mature Jonah assets and reinvest in higher growth opportunities in BP’s North America gas business and elsewhere,” said Bob Dudley, BP chief executive.

“We are actively managing our portfolio of assets and businesses worldwide, focusing our investment on future growth in BP’s areas of strength.”

It is the second time this year US-based Linn has struck up a deal to buy fields from BP after acquiring natural gas assets in Kansas for $1.2bn earlier this year.

BP shares closed down 1.3 per cent to 402p yesterday while Linn fell 2.2 per cent to $35.30.