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BP Completes Deepwater Gulf Sale with Plains

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BP announced Friday it has completed its sale of a number of oil and gas fields in the deepwater U.S. Gulf of Mexico to Plains Exploration & Production Company (PXP).

As announced on Sept. 10, BP agreed to sell the fields to PXP for $5.55 billion in cash subject to customary post-closing adjustments, with an effective date of Oct. 1, 2012. The deal, which included BP’s interests in three BP-operated assets and in two non-operated assets, was among the biggest transactions in the U.S. Gulf of Mexico.

"This further demonstrates the significant value BP has been able to realise through the sale of non-strategic assets,” said Bob Dudley, BP group chief executive.

"In line with our strategy, we have concentrated our Gulf of Mexico business around our major operated and non-operated production hubs, each of which has significant future growth potential, together with our leading exploration position. This repositioning and simplification has allowed us to focus our capability and personnel on delivering long-term growth from our core assets in the Gulf."

Since the beginning of 2010, BP has now entered into agreements to sell assets with a value of around $37 billion. The BP-operated assets in the deal include the Marlin hub (BP working interest 100 percent); Horn Mountain (BP 100 percent) and Holstein (BP, 50 percent). The two non-operated assets are Ram Powell (BP 31 percent) and Diana Hoover (BP 33.33 percent).

BP will concentrate future activity and investment in the deepwater Gulf on growth opportunities around its four major operated production hubs – Thunder Horse, Atlantis, Mad Dog and Na Kika -- and three non-operated production hubs – Mars, Ursa and Great White -- as well as on significant exploration and appraisal opportunities. BP currently anticipates investing on average at least $4 billion in the Gulf of Mexico each year for the next decade.

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