BP sells Venezuela, Vietnam assets

BP has agreed to sell its upstream businesses and associated interests in Venezuela and Vietnam to TNK-BP for $1.8 billion.

Offshore staff

LONDON -- BP has agreed to sell its upstream businesses and associated interests in Venezuela and Vietnam to TNK-BP for $1.8 billion.

The agreement includes BP's interests in the Petroperijá, Boquerón, and PetroMonagas joint ventures in Venezuela and, in Vietnam, BP's 35% operating interest in the Lan Tay and Lan Do gas fields and associated pipeline and power generation interests.

BP's interests included in the agreement for the Venezuelan sale are a 16% stake in the PetroMonagas SA heavy oil joint venture in the Orinoco basin, a 40% interest in the Petroperijá SA joint venture, and a 26.67% interest in the Boquerón SA joint venture, all of which are operated by Venezuela's state oil company, Petróleos de Venezuela SA. BP's total net production from Venezuela is some 25,000 boe/d.

BP's interests included in the agreement for the Vietnamese sale are a 35% interest in offshore block 06.1, containing the Lan Tay and Lan Do gas fields. In addition, BP has a 32.67% interest in the Petrovietnam-operated Nam Con Son pipeline that transports gas onshore from the Lan Tay and Rong Doi fields, and a 33.3% interest in the joint venture that owns and operates the 739MW Phu My 3 power plant in Baria Vung Tau province. BP's current net entitlement to production from Vietnam is approximately 15,000 boe/d.

10/19/2010

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