BP PLC has reportedly decided to divest its exploration and production operations in Pakistan by yearend, according to a company spokeswoman.
"You will see actual transaction taking place anytime around December," said BP spokeswoman Sabeen Jatoi.
The supermajor's decision to pull out from Pakistan is in line with a plan to sell its global assets in an effort to raise funds to use as compensation for the Macondo well blowout and oil spill in the deepwater Gulf of Mexico.
BP acquired its Pakistan operations when it acquired ARCO in 2000. ARCO purchased the assets when acquiring them from Union Texas in 1990.
Recent market chatter is pointing to a UAE-based buyer for the assets. Jatoi said the company will continue its operations until the deal is finalized. Production will remain unaffected, she said.
BP produces 19% of Pakistan's oil and 8% of the country's natural gas. It operates in Badin, Mirpurkhas, Khipro, and Digri Sanghar South and also owns non-operational blocks offshore.
BP's departure was expected, according to Masood Siddiqui, former vice-chairman of Pakistan Petroleum Exploration & Production Cos. Association.
"[BP's] business in Pakistan was never very large," he said, adding, "They haven't been investing in replacing their reserves, which depleted over the years."
Siddiqui noted also that return on investment as dictated under petroleum policies is not enough to encourage companies to venture into unexplored areas.
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