BP to Sell Interests in U.S. Gulf of Mexico to Plains for $5.55 Billion

LONDON--BP PLC (BP.LN), an integrated oil and gas company, said Monday that it has agreed to sell its interests in a number of oil and gas fields in the deepwater U.S. Gulf of Mexico to Plains Exploration and Production Company (PXP) for a total of $5.55 billion.

MAIN FACTS:

-As part of a previously-announced plan to divest the assets and position its Gulf portfolio for long-term growth, BP is selling its interests in three BP-operated assets:

-The Marlin hub, comprised of the Marlin, Dorado and King fields--BP working interest 100%; Horn Mountain--BP, 100% and Holstein--BP, 50%.

-The deal also includes BP's stake in two non-operated assets: Ram Powell--BP, 31% and Diana Hoover--BP, 33.33%.

-BP announced its intention to sell these non-strategic assets in May 2012.

-The parties anticipate the deal closing by the end of 2012.

-BP will concentrate future activity and investment in the Gulf on growth opportunities around its four major operated production hubs and three non-operated production hubs in the deepwater, as well as on significant exploration and appraisal opportunities in the Paleogene and elsewhere.

-BP currently anticipates investing on average at least $4 billion in the Gulf of Mexico each year for the next decade.

-BP is also progressing plans for a second phase of the Mad Dog field. BP now has six drilling rigs operating in the Gulf of Mexico and expects to have eight rigs in place by the end of the year, the most it has ever had in the region.

-BP PLC shares at 1105 GMT up 5.0 pence, or 1.2%, at 439.9 pence, valuing the company at GBP83.77 billion.

-Write to Razak Musah Baba at [e-mail]