BP (LON:BP) has inked a deal to offload mature oil assets in Egypt, the blue-chip energy group has said. The news comes after the company recently announced new production units in the Gulf of Mexico, enhancing its status as the area’s biggest producer.
BP’s share price has been little changed in London this morning, having inched 0.07 percent higher to 544.40p as of 08:57 BST. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.06 percent lower at 7,180.45 points. The group’s shares have given up nearly seven percent of their value over the past year, as compared with about a 7.5-percent drop in the Footsie.
BP to sell Egypt assets
BP announced in a statement yesterday that it had agreed to sell its interests in Gulf of Suez oil concessions in Egypt to Dragon Oil. Under the terms of the deal, the Dubai-based group will purchase producing and exploration concessions, including the FTSE 100 company’s interest in the Gulf of Suez Petroleum Company (GUPCO). The financial terms of the deal, however, were not disclosed.
BP explained that the deal, which is subject to the Egyptian Ministry of Petroleum and Mineral Resources’ approval, is expected to complete in the second half of the year, and is part of the London-listed company’s plan to divest more than $10 billion of assets globally over the next two years.
Chief executive Bob Dudley noted in the statement that “Egypt is a core growth and investment region” for the company, and that BP looked “forward to continuing to broaden our business” in the country.
Analysts on oil major
Jefferies reaffirmed the blue-chip group as a ‘hold’ last month, without specifying a target on the BP share price. According to MarketBeat, the oil major currently has a consensus ‘buy’ rating and an average price target of 650.88p.