BP Eyes Sale of Algerian Gas Project: Press
BP is searching for buyers for its stake in a major gas complex in Algeria, after a plan to sell the share to Russia’s Rosneft fell through, Reuters reported on February 6 citing sources.
The In Amenas project in the Sahara Desert comprises four fields and a plant for processing their gas with a production capacity of 9bn m3/yr of gas – equal to almost 10% of Algeria’s total output. BP holds a 45.9% share in the venture, while Norway’s Equinor also has 45.9% and Algeria’s Sonatrach 8.2%.
Talks with Rosneft collapsed, according to Reuters sources, because of Equinor’s reluctance to work with the Russian state producer, which is under US sanctions.
The planned sale comes as BP pushes ahead with a major divestment drive, aimed at making its business more resilient to soft prices. The major announced on February 4 it had sold $9.4bn of assets since the start of 2019, meaning it is already near to reaching its $10bn target for divestments by the end of this year. It aims to announce a further $5bn in agreed disposals by mid-2021, it said.
The In Amenas plant was assaulted in January 2013 by militant gunmen linked to al-Qaeda, resulting in the death of 40 staff. BP and Equinor secured a five-year extension to their production-sharing contract (PSC) for the project in 2018, taking its expiry to 2027.