Mitsui to buy BP's stake in UK North Sea Alba, Britannia fields

June 26, 2012

Mitsui & Co. Ltd. plans to buy BP PLC’s interests in the Alba and Britannia fields in the UK North Sea for $280 million, subject to regulatory and other licensee approvals.

Paula Dittrick

Mitsui & Co. Ltd. plans to buy BP PLC’s interests in the Alba and Britannia fields in the UK North Sea for $280 million, subject to regulatory and other licensee approvals.

BP holds 13.3% interest in Alba and 8.97% interest in Britannia. Closing is expected by the end of the third quarter. Net BP production from the two fields averages 7,000 boe/d compared with BP’s total 200,000 boe/d of North Sea production.

Trevor Garlick, BP North Sea regional president, said the divestments are part of BP’s strategy to develop a more focused business in the UK and Norway. BP expects to invest $10 billion over 5 years in the North Sea, including major projects in the UK and in Norway.

The transaction announcement comes 1 day after Linn Energy announced plans to buy some of BP’s interests in Wyoming gas assets for $1 billion. Since January 2010, BP has divested $24 billion. BP expects the total will reach $38 billion by yearend 2013.

About the Author

Paula Dittrick | Senior Staff Writer

Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.

Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.