20 December 2012 06:30 [Source: ICIS news]
SINGAPORE (ICIS)--BP announced late on Wednesday that it has agreed to sell its 34.3% interest in the Yacheng gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Co (KUFPEC) for $308m in cash.
BP expects the deal to close in the second half of 2013, subject to regulatory, China National Offshore Oil Corp (CNOOC) and third party approvals.
The sale takes BP’s total divestments announced since 2010 to $37.8bn, it said.
“This sale is part of BP’s ongoing global portfolio optimization,” said Chen Liming, President of BP China.
“BP remains committed to working with China to contribute its deep expertise and oil and gas supply options in this important emerging market,” Chen added.
Commercial production at Yacheng started in 1996.
The field currently supplies natural gas for power generation to Castle Peak Company in Hong Kong via a 780-kilometre pipeline.
Additional natural gas, condensate and LPG are sold to customers on Hainan Island, according to BP.
Following completion, the Yacheng field will be owned by CNOOC and KUFPEC at 51:49.
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