BP agreed to sell its interests in the Wytch Farm, Wareham, Beacon and Kimmeridge fields to Perenco UK Ltd for up to $610 million in cash. The sale of these interests is part of BP's plan, announced in July 2010, to divest up to $30 billion of assets by the end of 2011. Before today's agreement, BP had already announced sales agreements totalling around $25 billion.
An immediate payment of $500 million has been made, a further $55 million will be paid on completion which is expected at the end of 2011 with the remaining $55 million contingent on Perenco's future development of the Beacon field and on oil prices in 2011-13.
Equity interests being sold
- Wytch Farm: BP (Operator) 67.81%, Premier 12.38%, Maersk 7.43%, Summit Petroleum Dorset Ltd 7.43%, Talisman 4.95%
- Wareham and Beacon: BP (Operator) 67.5%, Premier 12.5%, Maersk 7.5%, Summit 7.5%, Talisman 5%.
- Kimmeridge: BP 100%.
Production associated with the sale:
Earlier in February 2011, BP initiated a sale which included the Wytch Farm onshore oilfield and all of BP’s operated gas fields in the Southern North Sea, including associated pipeline infrastructure and the Dimlington terminal. The company had reported net production from these assets to be around 40,000 BOE/d (75%- Gas). Thus, the remaining oil production of 10,000 BOE/d of the total package was from Wytch farm oil field.
BP’s Southern North Sea gas assets up for sale.
The production associated with BP’s Southern North Sea gas assets is approximately 30,000 boe/d. These assets could be valued between $750-$900 million (based on $25,000-$30,000/BOE). This sale is part of their $30 billion divestiture program.