BP to sell southern North Sea gas package to Perenco

Feb. 13, 2003
BP has agreed to sell a package of its UK southern North Sea gas production assets to Perenco UK Ltd. for $162 million in a cash transaction. The sale was effective as of Jan. 1, and is subject to UK regulatory consent and other approvals.

BP has agreed to sell a package of its UK southern North Sea gas production assets to Perenco UK Ltd. for $162 million in a cash transaction. The sale was effective as of Jan. 1, and is subject to UK regulatory consent and other approvals.

The sale includes BP's share in 14 operated gas fields including Indefatigable, East Leman, Davy, Trent, Tyne, Pickerill, and Waveney, together with associated pipelines and onshore processing facilities including the Bacton terminal. Perenco has indicated a desire to operate these assets, subject to government and license partner approvals.

BP's share of combined proved gas reserves for these fields is 274 bcf and BP share of production is 150 MMcf/d or about 26,000 boe/d. BP's overall production from the UK North Sea is 750,000 b/d.

BP retains a significant business in the southern North Sea, operating nine gas fields, associated pipelines, and the onshore terminals at Dimlington and Easington. BP also owns substantial interests in the Conoco-operated Viking, Valiant, and Vulcan fields, and the Shell-operated Sean field. The BP share of production from these fields amounts to 380 MMcf/d or about 66,000 boe/d.

We are pleased to have reached this agreement with Perenco, the company said. The deal brings another new entrant into the UKCS and this can only benefit the province as it matures. We expect that the deal will be completed by 4Q 2003 and will provide all necessary assistance to Perenco to ensure a smooth transfer of the assets.

02/13/03