News Summary: BP sells gulf assets for $5.55 bn
BAD MOJO: BP is selling some deep-water assets in the Gulf Mexico, taking a big step toward paying off the costs of the disastrous Deepwater Horizon explosion and oil spill in 2010 that killed 11 workers.
GOING DEEP: Plains Exploration & Production Co. will spend $5.55 billion for BP's interests in the Marlin hub, Horn Mountain and Holstein. The deal also includes BP's stakes in two non-operated assets, Ram Powell and Diana Hoover. Plains is also buying the 50 percent interest in the Holstein field that BP doesn't own from Shell Offshore Inc. for $560 million.
STILL A PLAYER: BP is not leaving the gulf, however, and will continue to operate four major production platforms in the region: Thunder Horse, Atlantis, Mad Dog and Na Kika. It will also hold on to three other hubs which it doesn't operate. "While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP's global exploration and production portfolio and we intend to continue investing at least $4 billion there annually over the next decade," said BP chief executive Bob Dudley.