BP Sells Vene Assets

UK-based oil company BP confirmed yesterday that it is selling assets in Venezuela and Vietnam to Russian peer TNK-BP for $1.8bn. BP also declined to comment on the potential value of those assets, though they have been estimated at $1bn, according to an industry banker not associated with the deal. In Venezuela, TNK-BP, a 50/50 joint venture between BP and several Russian businessmen, says it will acquire from BP a 16.7% equity stake in the PetroMonagas extra heavy oil producer, a 40.0% stake in Petroperija, which operates the DZO field, and a 26.7% stake in Boqueron. These assets operate as joint ventures with PVDSA and have a combined capacity of 25 thousand barrels of oil equivalent per day. The buyer says the acquisitions will be financed through cash on hand and will not require additional capital from the shareholders of TNK-BP. A deposit of $1bn will be made by October 29, with final payment upon completion. Goldman Sachs and HSBC acted as BP’s financial advisors, says a company spokesman, while TNK-BP’s board was advised by Lexicon Partners and management by Credit Suisse.