euro adhoc: BP PLC
BP TO SELL SOUTHERN NORTH SEA GAS PACKAGE TO PERENCO (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
February 13, 2003
BP TO SELL SOUTHERN NORTH SEA GAS PACKAGE
TO PERENCOBP announced today that it has agreed to sell a package of its UK Southern North Sea gas production assets to Perenco UK Limited for $162 million in a cash transaction. The sale has an effective date of January 1, 2003 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 licence partner approvals.
BP's share of combined proved gas reserves for these fields is approximately 274 billion cubic feet and BP's share of production is around 150 million cubic feet per day or about 26,000 barrels a day oil equivalent. BP's overall current production from the UK North Sea is approximately 750,000 barrels a day.
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 some 380 million cubic feet per day or about 66,000 barrels a day oil equivalent.
BP said that the sale would improve returns on its upstream portfolio by reducing operating costs and freeing up capital for investment in other projects offering better profit margins.
BP said: "We are pleased to have reached this agreement with Perenco. 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."
Notes to Editors:
Details of the complete package of assets being sold are:
INDEFATIGABLE AREA
Field Blocks Interest (%) Operator
Indefatigable (Inde) 49/18, 49/23 30.77 BP SW Inde 49/23 30.77 BP Baird 49/23 30.77 BP Bessemer 49/23 30.77 BP Bell 49/23 30.77 BP Davy 49/30a, 53/5a 22.22 BP Boyle 49/30a, 49/30c 22.22 BP Brown 49/30c 22.22 BP North Davy 49/30a 22.22 BP
· The nine Inde and Davy area fields were developed via seven platforms (two manned) and a subsea tieback (Bell). They are situated 80-100km east of Bacton in Norfolk. The gas from the fields is all routed to the Inde 49/23A platform and then exported to the BP terminal at Bacton (also part of the sale package)
EAST LEMAN AREA
Field Blocks Interest (%) Operator
East Leman 49/27, 49/28F1 48.37 BP
· BP operates the eastern sector of the Leman field (50km east of Bacton). The eastern sector came on stream in August 1968 and has been developed using nine platforms. All gas is routed to platform 49/27A and then exported to the BP terminal at Bacton.
TRENT AND TYNE AREA
Field Blocks Interest (%) Operator
Trent 43/24a 100.00 BP Tyne 44/18a 100.00 BP
· Both these fields are developed using a single unmanned platform. Gas is routed to Trent and then via the Esmond Transmission System (also part of the sale package) to the BP Bacton terminal.
OTHER FIELDS AND BLOCKS
Field Blocks Interest (%) Operator
Pickerill 48/11a, 48/11b 56.13 BP Waveney 48/17c 86.00 BP -- 48/11c 50.00 ExxonMobil -- 53/5b 40.00 BP
· Pickerill field is situated 65km east of the Humber estuary. First gas was in 1992. There are two unmanned platforms on Pickerill and gas is exported to the ConocoPhillips operated Theddlethorpe terminal.
· First gas for Waveney was in 1998. It has been developed with an unmanned platform and 2 wells. Gas is exported to the ConocoPhillips terminal at Bacton.
TERMINAL AND PIPELINES
Pipeline/Facility Interest (%) Operator
BP Bacton Terminal 42.48 BP East Leman - Bacton Pipeline 48.37 BP Inde - Bacton Pipeline 18.23 BP Esmond Transport System 12.50 GdF Pickerill - Theddlethorpe Pipeline 56.13 BP
· As part of the sale package, BP is selling its equity stakes in the relevant export pipelines and the BP terminal at Bacton. The terminal can handle 2.4bcfd of gas and 2.8mbd of liquids.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchangeend of announcement euro adhoc 13.02.2003
Further inquiry note:
Further enquiries: Richard Grant, BP press office, Aberdeen, tel: +44 (0)1224 832347,
mobile: 07730 937215 Clare Bebbington, BP press office, London, tel: +44 (0)20 7496 4851 Paddy Spink,
Perenco, London, tel: +44 (0)20 7376 5250 Web sites: www.bp.com www.perenco.com
Branche: Energy
ISIN: GB0007980591
WKN: 850517
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