BP (LON:BP) has kicked off a process to sell mature oil fields in Egypt, Bloomberg has revealed. The oil major’s move will come with the company looking to shift investment in the country to natural gas.
BP’s share price has urged in London in today’s session, having added 0.99 percent to 469.15p as of 14:35 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.47 percent higher at 7,173.03 points. The group’s shares have added a little over two percent to their value over the past year, as compared with about a 3.3-percent dip in the Footsie.
BP looks to sell stake in Egypt assets
People with knowledge of the matter told Bloomberg yesterday that BP’s Gulf of Suez assets had been on sale for a few months and the company was hoping a deal will raise about $1 billion. The sources, however, cautioned that divesting the Egyptian onshore fields could be sensitive since they employ thousands of local staff.
The sale will come with the blue-chip oil major targeting to sell between $2 billion and $3 billion of assets this year, down from $4.3 billion last year.
Analysts on blue-chip oil major
JPMorgan Chase & Co reiterated its ‘overweight’ stance on BP earlier this month, valuing the shares at 560p, while Credit Suisse continues to see the company as an ‘outperform’ with a price target of 575p on the stock. According to MarketBeat, the blue-chip oil group currently has a consensus ‘hold’ rating and an average valuation of 549.12p.
BP recently updated investors on its full-year performance, reporting a surge in profits, having benefitted from an upswing in oil prices.