BP to Divest Package of UK Upstream Assets

 

BP announced today the intention of selling its interests in a number of operated oil and gas fields in the UK. The assets involved are the Wytch Farm onshore oilfield in Dorset and all of BP’s operated gas fields in the Southern North Sea, including associated pipeline infrastructure and the Dimlington terminal.

BP anticipates that the staff currently working on these assets will transfer employment to the new buyer when the divestments are completed.

These divestments will allow BP to focus resources and investment on its diverse central North Sea, northern North Sea, West of Shetland and Norway assets and on successful delivery of its new major projects.

Trevor Garlick, Regional President, BP North Sea said: “The North Sea is a significant business for BP and we are currently investing here at the highest level for more than ten years, with four major new field development projects underway in the UK and two in Norway. The assets we intend to divest are of high value but find it difficult to compete for capital and resource within our North Sea portfolio. We believe they will attract earlier investment and be of greater value to a new buyer.

“Ensuring continued safe operation of these assets will continue to be our priority as we seek potential purchasers and support our staff through the transition process which will follow.”

BP aims to complete the divestments around the end of 2011, subject to receipt of suitable offers and regulatory and third party approvals.

The equity being offered for sale by BP is as follows:

Wytch Farm
All of BP’s equity which is:

  • 67.81% operated interest in the Wytch Farm oil field (covering the Frome, Bridport and Sherwood reservoirs)
  • 67.5% operated interest in the Beacon discovery
  • 67.5% operated interest in the Wareham oil field
  • 100% operated interest in the Kimmeridge oil field

 

Southern North Sea 

  • BP’s interest in the Cleeton stream fields
  • BP’s interest in the West Sole stream fields
  • BP’s interest in the Amethyst field and
  • BP’s interest in the related infrastructure, including the Cleeton Field, the Southern North Sea Pipeline System (SNSPS) and the Dimlington terminal
Asset
Interest (%)
Operator
Cleeton Stream
ECA Riser Tower
65.00
BP
Apollo
65.00
BP
Mercury
73.33
BP
Minerva
65.00
BP
Neptune1
100.00
BP
Wollaston
66.27
BP
Whittle
66.27
BP
Ravenspurn South
100.00
BP
Ravenspurn North
53.50
BP
West Sole Stream
West Sole
100.00
BP
Hyde
100.00
BP
Hoton
100.00
BP
Newsham
100.00
BP
Amethyst Unit
83.65
BP
Infrastructure
Cleeton Platform
100.00
BP
SNSPS
100.00
BP
Dimlington Terminal2
100.00
BP
Dimlington to Saltend
Condensate Pipeline
100.00
BP

1 BP will acquire 100% of Neptune on completion of an SPA signed with Amerada Hess in 2010.
2 Including the BP Easington Terminal and the Centrica Easington to Dimlington Linkline BP’s net production from these assets is some 40 mboe/d.

 

BP in the North Sea 

  • BP is a major investor in the North Sea with an extensive portfolio of production from existing reservoirs, new projects under development and growth potential in undeveloped resources.
  • BP invested some £1.5 billion of capital in the North Sea during 2010 and plans to invest some £12 billion in total over the next five years.
  • Four major projects are currently underway in the UK – Clair Ridge, Quad 204 (Schiehallion), Devenick and Kinnoull and two in Norway – Skarv and Valhall Redevelopment.
  • In the 26th UKCS Licensing Round (2010), BP was awarded licence interests in seven offshore exploration blocks – the largest licence award BP has received in the UK for more than a decade.
  • To deliver its North Sea plans, BP is looking to recruit around 150 experienced engineers annually across a range of disciplines in addition to ongoing graduate recruitment.

Source:BP, February  22, 2011;

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