The British oil and gas producer BP has agreed to sell its interests in the Jonah and Pinedale upstream operations in Wyoming to Linn Energy for $1.02bn. The sale is expected to be completed by 31 July.
BP’s nearby operations in Moxa and Wamsutter will remain unaffected.
Bob Dudley, group chief executive of BP, 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.
BP expects its total divestments to increase to $38bn by the end of 2013.
Under the agreement, BP will sell its operations centre in Sublette County, Wyoming, and all of its working interests in approximately 260 operated wells with recent net BP natural gas production of 80 million standard cubic feet equivalent of gas a day (mmscfe/d) and non-operated wells with recent net BP production of 66 mmscfe/d.
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.
Completion of the sale is subject to closing conditions including the receipt of all necessary governmental and regulatory approvals.