UK: BP Sells North Sea Stakes for $1.1 Billion

BP is set to sell its stakes in a number of its Central North Sea oil and gas fields for $1.058 billion, the company announced today. The assets, located in the the UK, will be sold to Abu Dhabi-based TAQA.

The stakes to be sold include interest in several BP-operated fields, with substantial stakes in each, including a 70 per cent stake in the Harding field, an 88.7 per cent stake in the Denevick field and a 37.03 per cent stake in the Maclure field. Additionally, TAQA will receive stakes in several of BP's non-operated assets, including the Brae fields, the Braemar field and stakes in the associated transport infrastructure of those fields, including the SAGE system, Forties-Brae and Forties-Braemar pipelines.

TAQA, which has already paid a deposit to BP of $632 million, will also pay BP future payments of $250 million, dependent on oil price and production, a statement from BP said today. This figure is expected to paid over three years.

BP said in the same statement that the sale of the assets is part of its drive to focus its attention on fewer assets of higher value, as part of its plan for long-term growth.

"It has made strategic sense for BP and for the buyer to combine our non-operated interests in the Braes and Braemar fields with Harding, Maclure and Devenick," BP's regional president for the North Sea, Trevor Garlick, said. "BP continues with a focused investment programme in the UK and Norway, which includes planned capital spending of $10 billion over five years."

TAQA also welcomed the acquisition in a seperate statement, saying the purchase of the stakes was part of its commitment to investing in its UK business.

"This investment is a great strategic fit for TAQA, ensuring growth for our UK business and establishes TAQA as a leading operator in the UK North Sea," Chief Executive Officer of TAQA, Carl Sheldon, said today.

BP expects the transaction to be completed by the second quarter of next year following the usual regulatory approvals.