BP (BP.) took a major step toward reaching its goal of $25 billion-$30 billion in asset sales by year-end 2011 with the announced sale of its 60% interest in Argentine joint venture Pan American Energy for $7.06 billion to joint venture partner Bridas. This sale would bring total planned asset sales to $21 billion since the firm announced its asset sale program to help cover Gulf of Mexico oil spill costs. We view it favourably, as BP is selling another a noncore asset with limited production impact.
The deal includes a $3.53 billion cash deposit with $1.41 billion due Dec. 3 and $2.12 billion due Dec. 28; the balance is due at closing in 2011. BP will be selling its interest in Pan American Energy's upstream operations in the Southern Cone region of South America with interests in blocks in four hydrocarbon basins in Argentina--Golfo San Jorge, Austral, Neuquen, and Northwest--along with transportation, storage, gas distribution, and power generation facilities. Net production for BP's 60% interest in the joint venture was 143,000 barrels of oil equivalent per day, which represents only 3.6% of BP's total production including joint ventures.
SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk
To view this article, become a Morningstar Basic member.
Register For Free
The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.