BP selling $1 billion in U.S. assets to LINN Energy
HOUSTON – BP has continued its assets sale drive with the divestment of a pair of upstream operations in the US to Linn Energy. Nasdaq-listed Linn is stumping up $1.025 billion in an all-cash deal for the British supermajor's interests in the Jonah and Pinedale plays in the Green River basin, Wyoming.
The sale includes around 260 operated wells with recent net gas production to BP of 80 million cubic feet equivalent per day. There are also non-operated wells with almost the same net amount to BP.
LINN Energy will acquire properties in the Jonah Field, located in the Green River Basin of southwest Wyoming, subject to closing conditions and a preferential right of purchase. The company anticipates the acquisition will close on or before July 31, 2012, and will be financed with proceeds from borrowings under its revolving credit facility.
BP CEO Bob Dudley commented: "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.”
Despite the divestment, BP insisted that it was not exiting the US onshore market, contending: "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.