By OGJ editors
HOUSTON, Feb. 27 -- BP PLC Wednesday said it agreed to transfer to European independent Perenco its interests in two Venezuelan production assets in a $160 million cash transaction.
The deal comes close on the heels of another multimillion-dollar transaction between the two companies. Separately and earlier this month, BP agreed to sell a package of its UK Southern North Sea gas production assets to Perenco unit Perenco UK Ltd. for $162 million.
Venezuelan deal
Perenco's acquired Venezuelan assets include a 60% stake in Boqueron field in eastern Venezuela and 100% interest in Desarrollo Zulia Occidental field (DZO field) in the western part of that country. BP serves as operator for both fields.
During 2002, BP's share of production from these fields averaged 26,100 b/d of oil. The deal is subject to approval by Venezuelan state oil firm Petroleos de Venezuela SA.
This deal, once completed, would boost Perenco's oil and gas production to 275,000 boe/d and its net production to 185,000 boe/d, the company said.
North Sea deal
As part of its North Sea deal, Perenco said it will acquire BP's share in 14 operated gas fields including Indefatigable, East Leman, Davy, Trent, Tyne, Pickerill, and Waveney. These assets also include associated pipelines and onshore processing facilities including the Bacton terminal. Prerenco has expressed interest in operating these assets, subject to certain approvals from the government.
These fields—net to BP—hold combined proved gas reserves of 274 bcf of gas and production of 150 MMcfd of gas.
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."
