BP sells Colombian business

Oil giant BP has today announced it will dispose of its oil and gas exploration business in Colombia to national oil company, Ecopetrol and Talisman of Canada.

The deal worth $1.9 billion (£1.2 billion) is part of BP’s plan to sell assets in order to fund its clean-up operation relating to the oil spill in the Gulf of Mexico.

Last month, the beleaguered oil company sold $7 billion (£4.6 billion) in assets to US-based oil production firm Apache Corp.

Meanwhile, commenting on today’s deal, it said in a statement: “BP … has agreed to sell its oil and gas exploration, production and transportation business in Colombia to a consortium of Ecopetrol, Colombia’s national oil company (51 percent), and Talisman of Canada (49 percent).”

Meanwhile, BP’s chief executive Tony Hayward, who will step down in in October, said:
“I am delighted with the price we have achieved for these assets.

“BP has been involved in Colombia for more than 20 years and played a major role in finding and developing the country’s major oilfields. But it now makes sense for the assets to go to owners more willing than BP to invest in their future development,” added Mr Hayward.

The deal, which is subject to regulatory approval, is expected to be finalised by the end the year.