Gulf Spill Fire Sale: BP Sells Pakistan Assets

Wednesday, December 15, 2010 @ 06:12 PM gHale


In an effort to raise cash to help pay for the oil spill in the Gulf of Mexico, BP will pick up $775 million after it sells off a portfolio of oil and gas assets in Pakistan to Hong Kong-listed United Energy Group.
The planned disposal of its upstream assets in Pakistan brought to $21.8 billion the amount that the company has raised, or agreed sales on, in recent months, BP officials said.
BP said it expects the costs of the Gulf oil spill the United States worst ever to hit $40 billion and said it would sell assets worth $25-$30 billion by the end of 2011 to pay for it.
Other sales included the $7 billion sale of its stake in Argentina-based Pan American Energy to China’s CNOOC.
United Energy Group, which has oil and gas interests in China and Indonesia and also operates in the oilfield services sector, beat off competition from Pakistan’s Oil and Gas Development Co (OGDCL) which said earlier in December it was bidding for the assets alongside partner Pakistan Petroleum.
The cash sale included nine producing and exploration blocks and four offshore exploration blocks, said the company, but excluded four of BP’s unexplored, non-operated blocks which it said it was reviewing with its partners, one of which is OGDCL.
BP said the deal the deal should close in first half of next year.



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