BP plc (BP) signed another deal to raise funds for paying spill costs. The U.K. oil major will divest its oil and gas properties in Vietnam and Venezuela to its Russian joint venture TNK-BP for $1.8 billion.
The assets in question hold reserves of 270 million barrels of oil equivalent (BOE) and production of 40,000 BOE per day.
BP is well on track with its $30 billion assets sale. So far, it has sold nearly $11.5 billion worth of assets including the $7 billion sale of onshore gas assets in the U.S., Canada and Egypt to Apache Corp. (APA).
Earlier this month, Bob Dudley commented that the company is trying to reduce the number of operatorships it holds in the Gulf of Mexico (GoM). The statement came shortly after Dudleyentered BP as the new chief executive officer.
BP is the largest operator in the GoM, producing from approximately 20 deepwater oilfields. Recently, it offloaded a 20% interest in Tubular Bells (a deepwater field discovered in 2003) to Hess Corp. (HES) for $40 million to relinquish its operatorship.
BP is considering resumption of its dividend payment early next year. The company’s share price has moved up more than 9% in the last four weeks, though it is still below the share price before the April 20 accident. As suggested by BP’s share price movement, the company’s recent strategic decisions have gradually helped to revamp its position. Our Neutral recommendation for BP continues with a Zacks #3 Rank (‘Hold’).
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