BP completes $5.5 billion asset sale to Plains Exploration

BP finalized its sale of $5.5 billion of Gulf of Mexico assets to Plains Exploration and Production Company, BP announced on Friday morning.

BP finished its sale of several operated and non-operated assets in the Gulf, including the Marlin hub, Horn Mountain, Holstein, Ram Powell and Diana Hoover, in a deal that had been originally announced in early September.

The completion of the deal marks $37 billion of asset sales for the British oil giant since 2010, when it implemented its post-Macondo strategy to downscale its portfolio and focus on the assets it considers to be key.

“This further demonstrates the significant value BP has been able to realize 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.”

The sales have come as BP is preparing for a February 25 civil litigation date with the federal government and the potential for billions in related civil fines.

BP will continue Gulf of Mexico investment in its four major operated production hubs, Thunder Horse, Atlantis, Mad Dog and Na Kika, as well as its three non-operated production hubs,  Mars, Ursa and Great White, the company said at the time of the sale’s September announcement.