BP TO SELL NEW ZEALAND E&P

BP Exploration has agreed to sell its exploration and production interests in New Zealand to a local company, Fletcher Challenge Ltd., for $360 million (New Zealand) ($220 million U.S.). The assets include an 18.75% interest in the offshore Maui field and a 37.5% interest in the onshore Kapuni field, both of which produce gas and condensate. BP said the sale is part of a policy to focus on core assets and dispose of nonstrategic holdings while concentrating on world frontier exploration.

Nov. 5, 1990

BP Exploration has agreed to sell its exploration and production interests in New Zealand to a local company, Fletcher Challenge Ltd., for $360 million (New Zealand) ($220 million U.S.).

The assets include an 18.75% interest in the offshore Maui field and a 37.5% interest in the onshore Kapuni field, both of which produce gas and condensate.

BP said the sale is part of a policy to focus on core assets and dispose of nonstrategic holdings while concentrating on world frontier exploration.

The BP group's New Zealand refining, marketing, chemical, and forestry assets are not covered by the sale agreement, which is subject to approval by the New Zealand Commerce Commission and the boards of both companies. Upon approval, Fletcher will resell the Kapuni interest to the Royal Dutch/Shell Group and Todd Petroleum Mining for $70 million (New Zealand), raising their interest to 50% each.