Factbox: BP shops assets to cover oil spill costs

(BestGrowthStock) – BP Plc is selling $7 billion of North American and Egyptian assets to Apache Corp and Asian gas fields worth $1.7 billion as part of its planned sale of $10 billion in assets to cover costs related to the worst oil spill in U.S. history.

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Below are details of the assets BP has agreed to sell, and those that analysts deem likely to be considered for sale or have been reported to be for sale.

APACHE TO BUY:

WESTERN CANADA

Gas-producing assets valued at US$3.25 billion. Net output is 240 million cubic feet per day (cfpd) of gas and 6,500 barrels per day (bpd) of liquids, with 214 million barrels oil equivalent (boe) of net proved reserves. Also included is the proposed Mist Mountain coal bed methane project.

PERMIAN BASIN

Valued at $3.1 billion, the assets include 10 fields, two BP-operated gas processing plants and non-operated interests in the Terrell gas processing facility. Net production is about 15,100 bpd of liquids and 80 million cfpd of gas, with net proved reserves of 126 million boe.

EGYPT

Valued at $650 million. Net production of assets being sold is 6,016 bpd of oil and 11 million cfpd of gas, with about 20 million boe of net proved reserves. Sale includes East Badr El-din concession where BP has an exploration license with a 100 percent interest, and BP’s interests in the Western Desert business concessions.

OTHERS:

VIETNAM

A BP spokesman said on Tuesday the company was “exploring divestment options” for its interest in the Nam Con Son gas project, which the London-based company says is one of Vietnam’s largest foreign investment projects.

BP’s share of production is 63 million buic feet per day — less than 1 percent of total oil and gas output. The stake is worth $966 million, analysts at UBS said in a research note on Monday.

PAKISTAN

BP also plans to sell its upstream assets in Pakistan, which comprise a number of producing fields and exploration blocks in the southern Sindh province.

The Pakistan fields produced 173 million cubic feet of gas per day in 2009 net to BP and are worth $690 million, UBS estimated.

ALASKA

BP had been in talks with potential buyers, including Apache, for its 26 percent stake in the Prudhoe Bay field in Alaska, the largest oil field in North America, sources familiar with the matter said.

The field’s production has declined but at 69,000 barrels per day (bpd) in 2009, it still contributed over a third of BP’s total output from Alaska’s North Slope. BP’s total Alaskan assets are estimated to be worth about $12 billion, UBS said.

RUSSIA

BP’s delicate balance of power with its partners in Russian joint venture TNK-BP means it cannot reduce its 50 percent stake without jeopardizing its bargaining strength and analysts do not expect an outright sale.

The company also holds a stake of about 1 percent in Rosneft. Some analysts see this as a potential disposal candidate but a sale would force the company to take a hefty loss as the shares have fallen significantly since BP bought them in Rosneft’s flotation.

ARGENTINA

BP holds a 60 percent stake in Pan American Energy (PAE), which owns Cerro Dragon, one of the largest shallow oil and gas fields in southern Argentina.

Once deemed near the end of its life, it now sets new output records, at about 80,000 bpd of oil — 80 percent of PAE output — and 130 million cubic feet of gas a day.

Reserves are 1 billion barrels of oil equivalent. BP’s stake in Pan American is estimated to be worth $9 billion.

COLOMBIA

The Cusiana and Cupiagua fields, discovered by BP in the early 1990s, saw production peak in 1999, achieving an average rate of 434,000 bpd.

When BP handed over operation of Cupiagua at the start of July to state oil company Ecopetrol SA, while continuing to operate Cusiana, Cupiagua output was 26,000 bpd. The Colombian assets are estimated to be worth $1 billion to $2 billion.

VENEZUELA

BP has minority stakes in two exploration and production joint ventures with state-owned PDVSA and is a partner in the Petromonagas crude upgrader that produces 110,000 bpd, with gross reserves of 1.2 billion barrels boe.

The Venezuelan assets are estimated to be worth $850 million to $1 billion.

REFINERIES AND RETAIL STATIONS

Reports have suggested BP could spin off its refineries and retail stations but industry sources said this was unlikely.

BP has whittled down its portfolio of refineries in recent years to a core of high-grade facilities integrated into broader operations such as trading and upstream production.

The company has also already sold out of many retail operations, including the U.S. market.

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(Reporting by Tom Bergin in London and Braden Reddall in San Francisco; Editing by Michael Shields, Gary Hill)

Factbox: BP shops assets to cover oil spill costs