BP Sells North Sea Assets, Acquires Utica Shale Leases (BP, CHK, APC, CVX)

Energy

Published: March 27, 2012 12:06 pm

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Oil supermajor BP plc (NYSE: BP) has sold its southern gas assets in the North Sea to the UK’s Perenco UK Ltd for $400 million in cash. The sale is part of the company’s strategy to sell $38 billion in assets by the end of 2013. This sale brings BP’s total asset sales to date up to $23 billion.

BP received $100 million in a first payment, with the remaining $300 million plus a potential $10 million due at the time the sale closes, now expected by the end of this year.

The company also announced today that it had negotiated leases on about 84,000 acres in the Utica shale play in Ohio. The deal was negotiated between BP and a group representing landowners in the Ohio Valley. Terms of the deal are confidential, but BP said that it needs to “execute” an agreement with each landowner.

BP is the latest major producer to enter the Utica play. Chesapeake Energy Corp. (NYSE: CHK), Anadarko Petroleum Corp. (NYSE: APC), and Chevron Corp. (NYSE: CVX) are among the other exploration and production companies active in the region.

BP’s shares are down about -2% today, at $45.30 in a 52-week range of $33.62-$48.34.

Paul Ausick

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