logo
Share SHARE
FONT-SIZE Plus   Neg

Sunday Times: BP Puts $3.2 Bln Of North Sea Oil Assets Up For Sale

British Oil giant BP plc (BP: Quote,BP.L) has put North Sea oil assets worth about 2 billion pounds or $3.2 billion up for sale, according to a report in the Sunday Times. The auction would be the biggest ever of the company's North Sea oil assets.

BP's move comes after the UK government said it plans to encourage more exploration in the North Sea and has offered tax breaks for the industry.

According to the report in the Sunday Times citing industry sources, BP launched an auction this month to sell many of its stakes in reservoirs where it holds a minority position. The company has reportedly hired investment bank Jefferies as an adviser.

BP, last Thursday, received approval from the UK to drill a new deepwater well off the northwest coast of the Shetland Islands.

In mid-October 2011, BP said that the UK government granted the company and its partners approval to proceed with the 4.5 billion pounds Clair Ridge oilfield development project in the North Sea. BP's partners in the project include Royal Dutch Shell Plc (RDS-A, RDSA.L, RDSB.L, RDS-B), ConocoPhillips (COP) and Chevron Corp. (CVX).

At that time, BP noted that the total investment of the company and its partners in four new oil and gas projects in the North Sea, together with development drilling and a number of smaller projects, would be almost 10 billion pounds over the next five years.

Earlier in 2011, BP and its partners announced plans for a 3 billion pounds redevelopment of the Schiehallion and Loyal fields in the Shetland Islands, and a 700 million pounds development of the Kinnoull field in the central North Sea.

BP closed Friday's trading at $45.59, up $0.29 or 0.64 percent on a volume of 3.56 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
US Steel Corp. (X) Tuesday said it will "adjust operations" and temporarily idle a part of its Minntac plant in Mt. Iron, Minnesota, effective June 1. According to reports, the move would see about 700 employees laid off. The company said the decision was due to its current inventory levels and ongoing... Hewlett-Packard Co. (HPQ) has filed a lawsuit against Michael Lynch, the co-founder of Autonomy Corp., and its former Financial Chief Sushovan Hussain for a whopping $5.1 billion alleging that the executives misrepresented the financial situation of Autonomy. An HP's spokeswoman confirmed that the... Nine acres of green grass with 400 trees and a half-mile-long walk way. We are not talking about any park, but the expansive rooftop of Facebook's new office. The 430,000 square feet office is a single room and it might be the largest open floor plan in the world.
comments powered by Disqus
RELATED NEWS
Trade BP now with 
Follow RTT