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BP PLC on Wednesday said it has agreed to sell its upstream business in Algeria to Eni SpA, for an undisclosed amount.
The London-based oil major said the deal includes its stake in the gas-producing In Amenas and In Salah concessions. BP holds 33.15% and 45.89% of working interests in the In Salah and In Amenas projects, respectively.
Both projects are operated by joint ventures co-owned by BP, Norwegian oil company Equinor ASA and Algerian state-owned energy company Sonatrach SpA.
BP said that the In Salah Gas joint venture has developed seven gas fields in the Southern Sahara, roughly 1,200 kilometres south of Algiers. Production began in 2004 with a second phase starting in 2016.
Meanwhile, the In Amenas joint venture produces gas and natural gas liquids from the Illizi basin in south-eastern Algeria, with first production in 2006, it added.
The transaction is subject to government approvals, partner pre-emption processes, and competition clearance processes.
Karim Alaa, BP's senior vice president of Egypt, Algeria and Libya, added: ‘We are very proud of what BP has achieved in Algeria over many years and have appreciated the support of the government over this time. With its significant existing presence in Algeria and wider region, we believe Eni will be well positioned to work with partners and the government as they continue to take these assets forward.’
Shares in BP were down 1.1% to 447.75 pence each in London on Wednesday morning.
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