By OGJ editors
HOUSTON, Dec. 14 -- United Energy Group Ltd. (UEG) agreed to pay $775 million to BP PLC for its upstream assets in Pakistan, which include nine producing and exploration blocks in Sindh province and four exploration blocks in the Arabian Sea.
The deal is expected to close by July 2011, pending the necessary governmental and regulatory approvals. BP Pakistan Exploration & Production Inc., BP Pakistan (Badin) Inc., and BP Exploration Alpha Ltd. own the assets being sold.
BP Pakistan's current net production is about 35,000 boe/d. Gross oil production is around 10,000 b/d while gas production is 200 MMscfd. As of Dec. 31, 2009, proved reserves attributable to BP's share in these assets were 43.1 million boe, BP said.
UEG agreed to pay BP a cash deposit of $100 million with the balance due on completion of the sale. The acquisition marks an entry into Pakistan for UEG, which primarily has upstream operations and provides patented service technologies in China and Indonesia.
The pending transaction excludes BP’s nonoperating interests on some other Pakistan assets. BP is a partner with Pakistan Exploration Ltd. on three offshore exploration blocks in Pakistan and with Oil & Gas Development Co. on another block.
BP said the sale of the Pakistan assets is part of its ongoing plan, announced in July, to divest as much as $30 billion of assets by yearend 2011. Previously, BP already had sales agreements totaling $21 billion.
The company said it continues to identify additional divestiture assets.