BP To Divest Two Gulf of Mexico Assets

BP is evaluating potential buyers for its stakes in the Kings Peak and Aspen fields in the Gulf of Mexico. BP owns 100% of Kings Peak and 40% in Aspen. Nexen is the other stakeholder in Aspen with 60%. Kings Peak produces around 150 million cubic feet of gas per day. Production has not yet commenced at Aspen, however, it is estimated to be 30 million cubic feet of gas and 30,000 barrels of oil a day. A BP spokesmen said these properties were selected based on the company's assessment of the market's interest and their fit with the company's deep water portfolio.

BP began actively marketing their interest in these properties during the second quarter of 2002. A review process is underway for the bids that have been submitted.

These divestments fit with BP's cost-cutting program and recent efforts to shift attention toward meeting longer-term financial goals and away from shorter-term production targets.