BP Sells Some Gulf of Mexico Assets for $5.55 Billion

BPLONDON -- Oil company BP (BP) said Monday it is selling some deep-water assets in the Gulf Mexico to Plains Exploration & Production Co. for $5.55 billion, a big step in the BP's drive to cover the cost of its oil well blowout in the Gulf two years ago and concentrate investment elsewhere.

BP is selling its interests in three of the assets it operates: the Marlin hub, Horn Mountain and Holstein. The deal also includes BP's stakes in two non-operated assets, Ram Powell and Diana Hoover.

Plains is also buying the 50 percent interest in the Holstein field that BP doesn't own from Shell Offshore Inc. for $560 million. Both deals, representing production of 59,500 barrels of oil equivalent per day, are expected to close by the end of the year.

"While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP's global exploration and production portfolio and we intend to continue investing at least $4 billion there annually over the next decade," said BP chief executive Bob Dudley.

The company's shares were up 1.1 percent at 439 pence in London trading following the announcement.

BP said it expects to dispose of $38 billion in assets between 2010 and 2013; total sales agreed so far are more than $32 billion. The company will concentrate future activity and investment in the Gulf of Mexico on growth opportunities around its four major operated production hubs and three non-operated production hubs in the deep water, as well as on significant exploration and appraisal opportunities in the Paleogene and elsewhere.

BP will continue to operate four major production platforms in the region: Thunder Horse, Atlantis, Mad Dog and Na Kika. It will also hold on to three other hubs which it doesn't operate.

The company now has six drilling rigs operating in the Gulf of Mexico and expects to have eight rigs in place by the end of the year, the most it has ever had in the region.



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cpo1514

Atta boy Barry..... driving out energy suppliers / job creators. Soon we will be a 3rd world country just like Kenya....

September 11 2012 at 9:29 AM Report abuse +1 rate up rate down Reply
1 reply to cpo1514's comment
j_swizzle

He wants us all to be like his countrymen, mud hut dwellers.

September 11 2012 at 10:43 AM Report abuse -1 rate up rate down Reply
atell02

dick channey and bush own big oil, no wonder everything is a mess

September 10 2012 at 11:06 PM Report abuse -1 rate up rate down Reply
bingogeorge4

opps "explorers"

September 10 2012 at 9:13 PM Report abuse rate up rate down Reply
bingogeorge4

Alert, Deep water drilling is new territory requireing new technology, new idea's and innovation.
Just as our space program had failures but many more successes.
We can not stop exploring, wheither in space or in deep water of our oceans.
BP is one of those explores/innovators.
Bp America hires thousands and thousands of American workers, good paying jobs here in America as well as throughout the world. We should be proud of companies like BP.

September 10 2012 at 9:10 PM Report abuse +2 rate up rate down Reply
Taina

To pay their $21 billion fine?

September 10 2012 at 8:58 PM Report abuse rate up rate down Reply
1 reply to Taina's comment
cpo1514

Fine??? That was a contribution to Obama Inc.

September 11 2012 at 9:29 AM Report abuse +1 rate up rate down Reply
Warrior

I'll admi;, I'm no businessman. BP ("BRITISH" Petroleum) is a foreign owned company, pumping oil from U.S. off shore fields; but selling it anywhere in the world. If some of its oilfield assets are being sold to an American owned company like "Plains Exploration and Production Co.;" then, more oil should stay in the U.S.; which will allow for greater independence from foreign oil. Prices at the pump, home heating oil, and industrial use should go down. There should be less pressure to pump out oil inareas deemed hazardous; or, explore in areas that may be marginal in productivity. In other words, we should be able to take a bit of a breather, IF the politicians and good old boys don't screw over the American people, ... as usual.

September 10 2012 at 7:35 PM Report abuse rate up rate down Reply
teapartyisnuts

n2monthsocrapleft
THE MUSLIM CLOWN OIL SPILL DESTROYED THE GULF N HE DID NOTHING ABOUT IT ~~"HOPE N CHANGE"~~WHAT A FARKIN DISGRACE . !
===========================================================================
As oil continues to flow in the Gulf of Mexico, TIME magazine is now turning its focus on who's to blame for the spill.

The magazine has released a 'Dirty Dozen' list of people responsible, which includes BP executives and Barack Obama.

Also on the list, coming in numbers 5 and 6, are George W. Bush and Dick Cheney.

"Presided over an administration that was swayed by oil and gas interests -- both have personal connections to the petroleum industry -- even as offshore drilling moved into ever-deeper waters," the magazine writes.

The topic of Bush administration culpability has come up in other places as well.

On ABC's This Week last Sunday, liberal Arianna Huffington said, "Right now we have precisely the regulatory system that the Bush-Cheney administration wanted: full of loopholes, full of cronies and lobbyists filling the agencies that are supposed to be overseeing the industry."

"So it's Bush's fault? Just to clear this up?" said conservative George Will, expressing the frustrations of many when they hear the previous administration held responsible for the current spill.

September 10 2012 at 5:17 PM Report abuse +7 rate up rate down Reply
1 reply to teapartyisnuts's comment
teapartyisnuts

REMEMBER BIRTHERCLOWN THE REPUBLICANS DON'T LIKE REGULATIONS AND THAT IS WHAT LEAD TO THE OIL SPILL IN THE GULF LACK OF REGULATIONS. AFTER THE OIL SPILL OBAMA HAD FIRED THE BUSH APPOINTEES THAT WORKED FOR MMS.

September 10 2012 at 5:25 PM Report abuse +2 rate up rate down Reply
2 replies to teapartyisnuts's comment
n2monthsocrapleft

~~~>THE MUSLIM CLOWNS OIL SPILL DESTROYED THE WHOLE GULF COAST,<~~~~~

September 10 2012 at 6:18 PM Report abuse -1 rate up rate down
Taina

The government failed to enforce the regulations on BP, a company that had a huge number of safety violations. Just follow the regulations in place.

September 10 2012 at 9:00 PM Report abuse +1 rate up rate down
Fred

BP is quitely getting out of the USA before they can be raped of everything they own.

September 10 2012 at 5:01 PM Report abuse +4 rate up rate down Reply
HBSSL

Did the new owner buy the liability? Sell it all off and the bad bad dream will go away

September 10 2012 at 2:53 PM Report abuse rate up rate down Reply
n2monthsocrapleft

THE MUSLIM CLOWN OIL SPILL DESTROYED THE GULF N HE DID NOTHING ABOUT IT ~~"HOPE N CHANGE"~~WHAT A FARKIN DISGRACE . !

September 10 2012 at 2:46 PM Report abuse rate up rate down Reply