BP has announced that it will sell its 34.3 per cent stake in Chinas Yacheng gas field to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for US$308mn as part of a divestment programme
Following the deal, KUFPEC will own 49 per cent of the partnership and Chinese state-owned energy major CNOOC will hold a majority 51 per cent stake.
The Yacheng gas field supplies natural gas for power generation to Castle Peak Company Limited in Hong Kong via a 780 km pipeline. Additional natural gas, condensate and LPG are sold to customers on Hainan Island.
“This sale (to KUFPEC) is part of BP’s ongoing global portfolio optimisation,” said Chen Liming, president of BP China.
“BP remains committed to working with China to contribute its deep expertise and oil and gas supply options in this important emerging market.”
BP operated the field until 1 January 2004 when it handed operatorship to CNOOC. Commercial production at Yacheng began in 1996.
The transaction is expected to close in the second half of next year, subject to regulatory, CNOOC and third-party approvals.
