BP Sells Malaysian Assets

BP plans to sell its 25% interest in Block A-18 in the Malaysia-Thailand joint development area for approximately $500 million.

A BP spokesman said, "We have decided that our ownership does not comply with our corporate goal of being number one or two in the basins in which we operate." BP's main focus in southeast Asia is on core liquefied natural gas developments such as Tangguh in Indonesia and the Australian North West Shelf. The company is also interested in developing its leadership positions in pipeline gas in Indonesia, southeastern China, and Viet Nam. The Block A-18 asset is an offshore production-sharing contract that BP inherited when it took over Atlantic Richfield Co.

BP said it would remain a significant investor in Malaysia where its interests are primarily in the chemicals business as well as a downstream oil and lubricants business.