BP announced that it has agreed to sell its 18.36 per cent non-operated interest in the Draugen field in the Norwegian Sea to AS Norske Shell for $240 million in cash. The agreement is a further example of BP’s active management of its portfolio in the North Sea, focusing investment on high value assets with long term growth potential, while realising the value of non-core assets.
“BP is a significant investor in Norway and is in the final stages of completing two major projects, the Skarv field and the re-development of the Valhall field, which will greatly increase our production from the country,” said Rebecca Wiles, managing director of BP Norway. “These investments, together with our continuing operation of the Ula field, underline our long term commitment to Norway.”
With the start-up of Skarv and Valhall redevelopment, BP’s Norwegian production is expected to more than double, to over 60,000 barrels of oil equivalent per day. The Valhall re-development project involves the installation of a new platform, extending production from the field out to 2050. The Skarv project, involving a new floating production storage and offloading (FPSO) vessel in the Norwegian Sea, is expected to produce for 25 years and to be a key hub for BP in Norway. Significant investments have been made in Ula and the field is expected to produce until 2028.
Net BP production from Draugen, which is operated by Shell, averages some 6,000 barrels per day. Completion of the deal is anticipated by the end of 2012, subject to regulatory approval.
With today’s announcement, BP has now entered into agreements to sell assets with a value of around $33 billion since the beginning of 2010. BP expects to divest assets with a total value of $38 billion between 2010 and 2013 as it focuses its business around the world on its strengths and opportunities for growth.