BP has agreed to sell its interests in the Jonah and Pinedale upstream operations in Wyoming to LINN Energy, LLC. LINN Energy has agreed to pay BP USD$1.025 billion in cash for the assets under the agreement.
The sale is expected to complete by July 31st, 2012 and is subject to closing conditions including the receipt of all necessary governmental and regulatory approvals. BP is selling its Sublette County, Wyoming operations center and all its working interest in the 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, under the agreement. Unaffected by the sale are BP’s upstream production operations in Moxa and Wamsutter, Wyoming.
The total value of divestments that BP has agreed since the beginning of 2010 is brought to approximately USD$24 billion, with the agreement to sell the Jonah assets. The company expects the total to increase to USD$38 billion by the end of 2013.
Bob Dudley, BP group chief executive, 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.”
