BP intends to sell Southern North Sea assets to fuel growth

After tying up a $7.2 billion alliance with Reliance, BP announced today the intention of selling its interests in a number of operated oil and gas fields in the UK. The assets involved are the Wytch Farm onshore oilfield in Dorset and all of BP’s operated gas fields in the Southern North Sea, including associated pipeline infrastructure and the Dimlington terminal.

These divestments will allow BP to focus resources and investment on its diverse central North Sea, northern North Sea, West of Shetland and Norway assets and on successful delivery of its new major projects.

Trevor Garlick, Regional President, BP North Sea said: “The North Sea is a significant business for BP and we are currently investing here at the highest level for more than ten years, with four major new field development projects underway in the UK and two in Norway. The assets we intend to divest are of high value but find it difficult to compete for capital and resource within our North Sea portfolio. We believe they will attract earlier investment and be of greater value to a new buyer.

BP aims to complete the divestments around the end of 2011, subject to receipt of suitable offers and regulatory and third party approvals.

The equity being offered for sale by BP is as follows: 

Wytch Farm
All of BP’s equity which is:

• 67.81% operated interest in the Wytch Farm oil field (covering the Frome, Bridport and Sherwood reservoirs)
• 67.5% operated interest in the Beacon discovery
• 67.5% operated interest in the Wareham oil field
• 100% operated interest in the Kimmeridge oil field Southern North Sea 
• BP’s interest in the Cleeton stream fields

• BP’s interest in the West Sole stream fields
• BP’s interest in the Amethyst field and
• BP’s interest in the related infrastructure, including the Cleeton Field, the Southern North Sea Pipeline System (SNSPS) and the Dimlington terminal