BP Plc (BP: Quote,BP_UN.TO: Quote,BP.L) would sell its interests in the Jonah and Pinedale upstream operations in Wyoming to LINN Energy LLC (LINE: Quote). Pursuant to the agreement, LINN Energy has agreed to pay BP $1.025 billion in cash for the assets. The sale of Jonah assets brings the total value of divestments that BP has agreed since the start of 2010 to around $24 billion. BP expects this total to increase to $38 billion by the end of 2013. Subject to closing conditions, the sale is currently anticipated to close by July 31, 2012.
As per the terms of the deal, BP is selling its operations center in Sublette County, Wyoming, and all of its working interest in around 260 operated wells with recent net BP natural gas production of 80 million standard cubic feet equivalent of gas a day (mmscfe/d), and non-operated wells with recent net BP production of 66 mmscfe/d, while BP's upstream production operations in Moxa and Wamsutter, Wyoming, remains unaffected by the sale.
Bob Dudley, BP group chief executive, said: "This sale will allow us to realise the value of the mature Jonah assets and reinvest in higher growth opportunities in BP's North America gas business and elsewhere." BP has invested $52 billion in the U.S. over the past five years, more than any other oil and gas company.
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by RTT Staff Writer
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