UK-based oil giant BP has agreed to sell its interests in the Jonah and Pinedale upstream operations in Wyoming to Houston, US-based LINN Energy LLC.
Under the terms of the deal, LINN will pay BP $1.025 billion in cash for the assets, which comprise its operations centre in Sublette County, Wyoming, and all of its working interest in approximately 260 operated wells with recent net BP natural gas production of 80 million standard cubic feet equivalent of gas a day, and non-operated wells with recent net BP production of 66 million standard cubic feet equivalent of gas a day.
BP’s upstream production operations in Moxa and Wamsutter, Wyoming, are unaffected by the sale, which is expected to complete by 31 July 2012.
Bob Dudley, 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.”
However, Dudley was keen to stress that the company’s US onshore upstream operations will continue to form an integral part of its business. "BP has invested $52 billion 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,” Dudley said. "The continuing development of new energy resources in our US gas business demonstrates our commitment to the nation’s economy and energy security."
The agreement to sell the Jonah assets brings the total value of divestments that BP has agreed since the start of 2010 to around $24 billion. BP expects this total to increase to $38 billion by the end of 2013.
BP is the second largest producer of oil and gas in the US. With 23,000 US employees, BP supports nearly 250,000 domestic jobs through its business activities.
