LONDON (ShareCast) - BP has announced the sale of its interests in the Jonah and Pinedale upstream operations, Wyoming, to LINN Energy.
The deal will earn BP $1.025bn in cash and is currently expected to be completed by the end of July 31st.
Bob Dudley, BP group chief executive, said: "This sale will allow us to realise the value of the mature Jonah assets and reinvest in higher growth opportunities in BP's North America gas business and elsewhere. We are actively managing our portfolio of assets and businesses worldwide, focusing our investment on future growth in BP's areas of strength."
The agreement to sell the Jonah assets brings the total value of divestments that BP has agreed since the start of 2010 to around $24bn. BP expects this total to increase to $38bn by the end of 2013.
The assets include BP's operations center in Sublette County, Wyoming, and all of its working interest in around 260 operated wells with recent net BP natural gas production of 80m standard cubic feet equivalent of gas a day (mmscfe/d)], and non-operated wells with recent net BP production of 66 mmscfe/d. BP's upstream production operations in Moxa and Wamsutter, Wyoming, are unaffected by the sale.
"BP's US onshore upstream operations are an integral part of its business and the company continues to look at opportunities for growth over the long-term," Dudley added.
"BP has invested $52bn in the US over the past five years, more than any other oil and gas company. In fact, we invest more in the US than anywhere else in the world. The continuing development of new energy resources in our US gas business demonstrates our commitment to the nation's economy and energy security."
The share price fell 0.76% to 404.15p.