BP plans to sell assets in Venezuela, Vietnam to TNK-BP for $1.8 billion

BP Plc agreed to sell assets in Venezuela and Vietnam to TNK-BP, its Russian oil venture with a group of billionaires, for $1.8 billion.

TNK-BP will make a $1 billion deposit by Oct. 29 and pay the remainder on completion of the deal, expected in the first half of 2011, the two oil companies said in statements today.

In Venezuela, TNK-BP will gain a 16.7 % stake in PetroMonagas SA, a heavy oil producer; a 40 % stake in Petroperija SA; and 26.7 % stake in Boqueron SA. The companies are joint ventures with Petroleos de Venezuela SA and have a combined capacity of 25,000 barrels of oil equivalent a day, the Moscow-based company said.

BP plans to sell $30 billion in assets to cover costs linked to the Gulf of Mexico oil spill, the worst in U.S. history. Russia and Venezuela signed an accord supporting the deal on Oct. 14, during President Hugo Chavez’s visit to the Kremlin. TNK-BP is buying the assets in a bid to expand outside Russia.

“Given Russia’s strong relationships with Vietnam and Venezuela we are sure that this transaction will create significant value both for TNK-BP and our local partners,” TNK- BP Chief Executive and billionaire shareholder Mikhail Fridman said in the statements.

In Vietnam, TNK-BP will buy BP’s 35 % stake in an offshore gas block containing the Lan Tay and Lan Do fields, a 32.7 % stake in the Nam Con Son pipeline and terminal and a 33 % stake in the Phu My 3 power plant, TNK-BP said.

Together the acquisitions add proven and probable reserves of between 260 million and 290 million barrels of oil equivalent, TNK-BP said.- Bloomberg

Tags: BP assets in Vietnam, BP Vietnam, TNK-BP

Posted by VBN on Oct 18 2010. Filed under Oil-Gas & Petroleum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry