British Petroleum has agreed to the sale of its 34.3% interest in the Yachen gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $308 million.
“This sale is part of BP’s ongoing global portfolio optimization,” said Chen Liming, president of BP China.
“BP remains committed to working with China to contribute its deep expertise and oil and gas supply options in this important emerging market.” The sale takes BP’s total divestments announced since 2010 to $37.8 billion,” he added.
The field currently supplies natural gas for power generation to Castle Peak Company in Hong Kong via a 780-kilometre pipeline. Additional natural gas, condensate and LPG are sold to customers on Hainan Island.
Following completion, the Yacheng partnership will consist of China National Offshore Oil Corporation with a 51% stake and KUFPEC with a 49% stake.
The deal is subject to regluatory, CNOOC and third party approvals, BP expects the deal to close in the second half of 2013.