Trade Resources Company News BP Agreed to Sell Its Stake in China's Yacheng Gas Field

BP Agreed to Sell Its Stake in China's Yacheng Gas Field

AFP quoted British oil giant BP saying that it had agreed to sell its stake in China's Yacheng gas field to the state owned Kuwait Foreign Petroleum Exploration Company as part of a divestment program.

BP said that it has agreed the sale of its 34.3%interest in the Yacheng gas field in the South China Sea to KUFPEC for USD 308 million cash.

The transaction is expected to close in the second half of next year,subject to regulatory,CNOOC and third party approvals.

BP operated the field until 1st January,2004,when it handed operatorship to major project partner CNOOC,the Chinese state owned energy giant.Commercial production at Yacheng began in 1996.

The Yacheng gas field supplies natural gas for power generation to Castle Peak Company Limited in Hong Kong via a 780 kilometre pipeline.Additional natural gas,condensate and LPG are sold to customers on Hainan Island.

The latest disposal comes as BP seeks to sell USD 38 billion worth of assets by the end of 2013 to help pay for cleaning up and for compensation after its the US Gulf oil spill disaster.

BP added that the latest sale takes its total divestments to USD 37.8 billion since 2010.

Mr Chen Liming president of BP China in a statement said that"This sale is part of BP's ongoing global portfolio optimization.BP remains committed to working with China to contribute its deep expertise and oil and gas supply options in this important emerging market."

Meanwhile,the London listed energy major announced a deal to sell its 50%stake in the Sean gas field,located in the North Sea,to British energy firm SSE for USD 288 million.




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Sells Stake in China Gas Field to Kuwait - BP
Topics: Metallurgy