BP Exploration Operating Co. Ltd. has joined the rush by parent British Petroleum Co. plc to sell its least profitable assets.
The British Petroleum upstream unit posted "for sale" signs on four aging U.K. North Sea oil fields and four satellites.
BP is considering sale of its Beatrice, Buchan, Clyde, and Thistle fields and satellites. They currently produce a combined 59,000 b/d, of which BP's share is about half.
The four fields and their satellites are known as the Mature Asset Team (Mast) fields. BP set up the Mast system in 1994, when oil prices were about $12/bbl and the fields were losing money.
Despite cost cutting measures, the fields are less profitable than BP's other fields and therefore are at a disadvantage in competing with other assets for funds and management time.
The fields
BP hopes late this summer to complete sales of:
- Beatrice field, on Block 11/30a, producing from four shallow water platforms through a dedicated export pipeline to Nigg terminal near Aberdeen.
- Buchan field, Blocks 20/5 and 21/1, producing via a converted semisubmersible drilling rig, with oil exports via pipeline to the Forties field network.
- Clyde field, Block 30/1b, where a platform exports oil via the Fulmar field platform. The Clyde asset includes Medwin and Leven satellites.
- Thistle field, Blocks 211/18, 211/18a, and 211/19, producing through a fixed platform, with oil exports sent via Brent field to Sullom Voe terminal. Thistle includes Don and Deveron satellites.
BP is considering a number of purchase offers for its Seillean production ship, currently on station in Donan field.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
