BP to sell Argentinean asset to Bridas for $7.06 billion

As part of its $30-billion assets disposal plan, British oil giant BP yesterday signed a deal to sell its stake in an Argentina-based oil and gas company to Bridas Corporation for $7.06 billion in cash.

London-based BP is selling to sell its 60 per cent stake in Pan American Energy (PAE) to Bridas, where the Argentina-based oil and gas company already holds 40 per cent.

BP said that the sale is part of its plan announced in July 2010, to divest up to $30 billion of assets by the end of 2011 in order to fund its Gulf of Mexico oil spill.

Prior to this disposal, BP has sold assets worth around $14 billion.

Under the deal, Bridas, Argentina's second-biggest oil producer will pay BP a cash deposit of $3.53 billion with the balance of the proceeds due on completion of the sale.

Bridas will pay $1.41 billion of this deposit on 3 December 2010, and the remaining $2.12 billion on 28 December 2010.