BP Announces Resolution of All Criminal and Securities Claims by U.S.
Government Against Company Relating to Deepwater Horizon Accident
- Resolution of all criminal claims with Department of Justice includes $4
billion paid in installments over a period of five years
- Resolution of all securities claims with Securities and Exchange Commission
includes $525 million paid in installments over a period of three years
- Existing $38.1 billion charge against income to increase by approximately
- BP is prepared to vigorously defend itself against remaining civil claims
BP today announced that it has reached agreement with the United States
government, subject to court approval, to resolve all federal criminal charges
and all claims by the Securities and Exchange Commission (SEC) against the
company stemming from the Deepwater Horizon accident, oil spill, and response.
“All of us at BP deeply regret the tragic loss of life caused by the Deepwater
Horizon accident as well as the impact of the spill on the Gulf coast region,”
said Bob Dudley, BP’s Group Chief Executive. “From the outset, we stepped up by
responding to the spill, paying legitimate claims and funding restoration
efforts in the Gulf. We apologize for our role in the accident, and as today’s
resolution with the U.S. government further reflects, we have accepted
responsibility for our actions.”
In eliminating the possibility of any further federal criminal charges against
the company based on the accident, BP has taken another significant step forward
in removing legal uncertainty and can now focus more fully on defending itself
against all remaining civil claims.
“We believe this resolution is in the best interest of BP and its shareholders,”
said Carl-Henric Svanberg, BP’s Chairman. “It removes two significant legal
risks and allows us to vigorously defend the company against the remaining civil
TERMS OF RESOLUTION
As part of the resolution, BP has agreed to plead guilty to 11 felony counts of
Misconduct or Neglect of Ships Officers relating to the loss of 11 lives; one
misdemeanor count under the Clean Water Act; one misdemeanor count under the
Migratory Bird Treaty Act; and one felony count of obstruction of Congress. This
resolution is subject to U.S. federal court approval.
Thirteen of the 14 criminal charges pertain to the accident itself and are based
on the negligent misinterpretation of the negative pressure test conducted on
board the Deepwater Horizon. BP acknowledged this misinterpretation more than
two years ago when it released its internal investigation report. Today’s
agreement is consistent with BP’s position in the ongoing civil litigation that
this was an accident resulting from multiple causes, involving multiple parties,
as found by other official investigations. The remaining criminal count pertains
to two BP communications made to a member of Congress during the spill response
about flow rate estimates. As part of its resolution of criminal claims with the
U.S. government, BP will pay $4 billion, including $1.256 billion in criminal
fines, in installments over a period of five years. BP has also agreed to a term
of five years’ probation.
Under the resolution with the Department of Justice (DOJ), a total of $2.394
billion will be paid to the National Fish & Wildlife Foundation (NFWF) over a
period of five years. In addition, $350 million will be paid to the National
Academy of Sciences (NAS) over a period of five years.
Pursuant to the terms of the plea agreement, BP has also agreed to take
additional actions, enforceable by the court, to further enhance the safety of
drilling operations in the Gulf of Mexico. These requirements relate to BP’s
risk management processes, such as third-party auditing and verification,
training, and well control equipment and processes such as blowout preventers
and cementing. In addition, BP has agreed to several initiatives with academia
and regulators to develop new technologies related to deepwater drilling safety.
The resolution also provides for the appointment of two monitors, both with
terms of four years. A process safety monitor will review, evaluate and provide
recommendations for the improvement of BP’s process safety and risk management
procedures concerning deepwater drilling in the Gulf of Mexico. An ethics
monitor will review and provide recommendations for the improvement of BP’s Code
of Conduct and its implementation and enforcement.
Under U.S. law, companies convicted of certain criminal acts can be debarred
from contracting with the federal government. BP has not been advised of the
intention of any federal agency to suspend or debar the company in connection
with this plea agreement. BP will continue to work cooperatively with the
In its resolution with the SEC, BP has resolved the Commission’s Deepwater
Horizon-related claims against the company under Sections 10(b) and 13(a) of the
Securities Exchange Act of 1934 and the associated rules. BP has agreed to a
civil penalty of $525 million, payable in three installments over a period of
three years, and has consented to the entry of an injunction prohibiting it from
violating certain U.S. securities laws and regulations. The SEC’s claims are
premised on oil flow rate estimates contained in three reports provided by BP to
the SEC during a one-week period (on April 29 and 30 and May 4, 2010), within
the first 14 days after the accident. This resolution is subject to U.S. federal
“Since the spill, we have worked hard to rebuild confidence in the company,”
said Mr. Dudley. “We take seriously not only our commitment to safety and
operational excellence but also our communications with stakeholders, including
the public, the government and our investors.”
FINANCIAL IMPLICATIONS OF RESOLUTION
The aggregate amount of the resolution is approximately $4.5 billion, with
payments scheduled over a period of six years. As of the end of September 2012,
BP’s financial statements recorded a charge taken against pre-tax income in
relation to the accident and oil spill of $38.1 billion. This charge included
$525 million provided for the SEC settlement. Today’s resolution is expected to
result in an increase of approximately $3.85 billion to the $38.1 billion charge
taken against income as of the end of September. BP’s financial statements as of
the end of December 2012 will reflect this additional charge, as well as any
other adjustments arising during the fourth quarter. It is anticipated that the
cash outflows can be met within BP’s current financial framework. A summary
payment schedule is attached to this release.
BP will continue to vigorously defend itself against all remaining civil claims
and to contest allegations of gross negligence in those cases. The remaining
claims include: federal civil claims, including those arising under the Clean
Water Act; federal and state Natural Resource Damages claims; private civil
claims pending in MDL 2179 that were not covered by the settlement with the
Plaintiffs’ Steering Committee (PSC); private securities claims pending in MDL
2185; state economic loss claims; and miscellaneous private civil claims pending
in other federal and state courts. BP believes that today’s agreement is
consistent with its legal position that it was not grossly negligent. All the
pleas related to the accident itself are based on no more than negligent
“From the outset, we made a commitment to clean up the spill and pay legitimate
claims – and we’ve been fulfilling that commitment ever since,” said Mr. Dudley.
“As we move forward, we are preparing to defend ourselves in court on the
remaining claims. We are open to settlements, but only on reasonable terms.”
A SAFER, STRONGER BP
BP has taken significant steps to further enhance safety and risk management
throughout its global operations. It launched an internal investigation
immediately after the accident, publicly released the results, and has been
implementing all 26 of the investigation's recommendations. BP has also, among
other things, made key leadership changes, reorganized its upstream business,
created a centralized Safety and Operational Risk organization, and adopted new
deepwater drilling standards in the Gulf of Mexico that exceed current
regulatory requirements. BP has shared what it has learned with industry and
regulators around the world.
“We are committed to building a safer, stronger BP,” said Mr. Svanberg. “This
work did not begin with the Deepwater Horizon accident and will not end with
Over the past five years, BP has invested more than $52 billion in the United
States – more than any other oil and gas company, and more than it invests in
any other country where it operates. The company employs 23,000 Americans and
supports nearly a quarter of a million American jobs.
On top of this business investment, BP has to date spent more than $14 billion
in operational response and clean-up costs. BP continues to monitor the Gulf and
its shoreline, and the company has supported regional tourism, promoted Gulf
seafood, and committed $1 billion to early restoration projects. BP also quickly
set up a process to pay all legitimate claims and established a $20 billion
Trust to assure Americans that the resources to pay claims, settlements, and
other costs would be there. To date, BP has paid more than $9 billion to
individuals, businesses and government entities and has already agreed to a
settlement with the Plaintiffs’ Steering Committee, resolving the substantial
majority of outstanding private economic loss, property damage and medical
claims, which BP estimates will cost approximately $7.8 billion.
Notes to Editors:
- As is typical procedure in criminal resolutions, the government has filed a
document called an “information,” which is a formal charging document that
describes the government’s allegations and the offenses with which BP is being
charged. The plea agreement between BP and the DOJ includes an exhibit called an
“allocution,” which sets forth the specific facts to which BP has admitted.
- As is typical procedure in SEC settlements, the SEC has filed a Complaint in
federal court in the Eastern District of Louisiana. BP consented to the entry of
a final judgment that provides for the payment of the civil penalty and the
- The injunction to which BP has consented as part of today’s agreement with the
SEC is typical in these types of settlements. If BP were to violate the
injunction, the SEC can petition the Court to hold the company in contempt of
the court order.
- All deferred payments under the SEC settlement will be subject to applicable
U.S. statutory post-judgment interest, which is based upon a rate equal to the
weekly average 1-year constant maturity U.S. Treasury yield.
- BP’s ordinary shares are listed on the London Stock Exchange. In the U.S., the
company’s shares trade on the New York Stock Exchange in the form of ADS. BP is
subject to the information requirements of foreign private issuers under the
U.S. Securities Exchange Act of 1934. The reports on which the SEC’s claims are
based were provided to the SEC on a Form 6-K. Further information related to
BP’s listings is available in BP’s Annual Report and Accounts and Form 20-F
- BP has previously secured contributions toward response and compensation costs
from the co-owners of the Macondo well, Anadarko ($4 billion) and MOEX ($1
billion), and from contractors who worked there, including Cameron ($250
million) and Weatherford ($75 million).
Summary Schedule of Payments
|NFWF & NAS
Note: Estimated payment dates assume court approvals and a sentencing date prior
to December 31, 2012 (the date will be set by the court) and assume that the
National Academy of Sciences agreement is signed upon announcement of the
BP Confirms Winning Bids for Nova Scotia Deepwater Exploration Blocks
BP was today notified that it was the successful bidder for four deepwater
exploration blocks offshore Nova Scotia, Canada.
The Canada-Nova Scotia Offshore Petroleum Board announced that BP was the
successful bidder for blocks five, six, seven and eight
in the Call for Bids NS12-1. The blocks together cover an area of almost 14,000
square kilometres and are located approximately 300 kilometres off the Nova
Scotia coast, southeast of Halifax, in water depths ranging from 100 to over
Mike Daly, BP Executive Vice President of Exploration said: “This award gives us
access to a significant piece of geology, one of the most promising new
deepwater areas to be licensed in recent years. Exploration is a key driver of
future growth for BP, and access to prospective new acreage such as this is
essential. This entry to Nova Scotia’s offshore plays to our strengths in the
deepwater and sub-salt.”
As a condition of the issuance of an Exploration Licence, BP must post within
thirty days a security with the Petroleum Board in the form of a Work Deposit.
The CNSOPB would then award the Exploration Licences to BP with an effective
date of Jan 15, 2013. BP then must submit an Exploration Plan to the Petroleum
Board within ninety days of that effective date.
In recent years, BP has secured access to significant new upstream acreage
globally; half of BP’s prospect inventory now comprises new plays and half is in
proven plays in known basins.
“We are pleased about the quality and materiality of our exploration prospects.
In addition to deepening in our existing core areas, our drilling programme is
expected to test 15 completely new plays between 2012 and 2015,” said Daly.
Parcel 5: 2,862.9 km2
Parcel 6: 2,822.0 km2
Parcel 7: 4,151.0 km2
Parcel 8: 4,145.9 km2
Map of Nova Scotia blocks
November 28, 2012 BBC News
BP faces temporary ban from new US contracts
BP has been temporarily suspended from new contracts with the US government, the
Environmental Protection Agency (EPA) has said.
While it is unclear how long the ban will last, it follows BP's record fine
earlier this month over the 2010 oil spill in the Gulf of Mexico.
The EPA said it was taking action due to
BP's "lack of business integrity" over
its handling of the blowout.
But BP said it had spent $14bn (£8.8bn) on its response to the spill.
"The BP suspension will temporarily prevent the company and the named affiliates
from getting new federal government contracts, grants or other covered
transactions until the company can provide sufficient evidence to EPA
demonstrating that it meets federal business standards," said the EPA in a
"Suspensions are a standard practice when a responsibility question is raised by
action in a criminal case."
'Resolve and lift' ban
The EPA and BP both said that the temporary ban would not affect existing
agreements BP has with the government.
The oil giant added that the suspension may in fact be lifted quite soon.
"The EPA has informed BP that it is preparing a proposed administrative
agreement that, if agreed upon, would effectively resolve and lift this
temporary suspension," BP said.
"Over the past five years, BP has invested more than $52bn in the United States
- more than any other oil and gas company, and more than it invests in any other
country where it operates. On top of this business investment, BP has to date
spent more than $14bn in operational response and clean-up costs."
Since the Deepwater Horizon accident, the US has granted BP more than 50 new
leases in the Gulf of Mexico, where the company has been drilling safely since
the government moratorium was lifted.
For now, BP is to be excluded from the lease of new exploration fields in the
Gulf of Mexico, including some 20 million acres that was auctioned on Wednesday.
Congressman Ed Markey, a senior member of the Natural Resources Committee in
Congress, said: "When someone recklessly crashes a car, their licence and keys
are taken away."
"The wreckage of BP's recklessness is still sitting at the bottom of the ocean
and this kind of time out is an appropriate element of the suite of criminal,
civil and economic punishments that BP should pay for their disaster," he added.
Continue reading the main story
BP's finance director Brian Gilvary told investors earlier this month that the
group would have to rethink its entire US strategy were a blanket ban put in
"How big this is depends on how long it lasts," said Phil Weiss, an analyst at
"It's a negative that they can't participate in (Wednesday's sale), but it's not
a big concern. If it happens two times, or three times, or 10 times, it's a much
The US is vital for BP, accounting for more than 20% of its global daily
production. It has ploughed more than $52bn (£32bn) into US energy development
projects since 2007, more than any other country BP invests in.
The UK company was the biggest fuel supplier to the US Department of Defense,
which awarded it contracts valued at about $1.35bn in 2011.
BP's contracts with the US military jumped 33% over a year in 2011, according to
data from Bloomberg. The group was awarded a fuel contract in May from the
Pentagon while it faced mounting legal costs over the disaster.
The Deepwater Horizon accident, in which an oil rig exploded killing 11 people,
caused one of the worst oil spills in history.
BP has pleaded guilty to 14 criminal charges over the accident.
The EPA is the lead agency for suspension and debarment matters regarding BP and
has the authority to disbar individuals and companies under sections of the
Clean Air Act and the Clean Water Act.
November 28, 2012
BP to Sell Package of Central North Sea Assets to Taqa for $1.1 Billion
BP announced today that it has agreed to sell its interests in
a number of central North Sea oil and gas fields to
TAQA for $1.058 billion plus
future payments which, dependent on oil price and production, BP
currently expects will exceed $250 million. The assets included in the sale are
BP’s interests in the BP-operated Maclure, Harding and Devenick fields and
non-operated interests in the Brae complex of fields and the Braemar field.
We are 51% owned by Abu Dhabi Water and Electricity Authority (ADWEA) which
is a government authority and which provides long-term stability for our
We are incorporated as a Public Joint
Stock Company and are listed on the Abu Dhabi stock exchange.
TAQA is organised into two business
streams: Oil & Gas and Power & Water.
TAQA’s Oil & Gas operations are located in North America, the United Kingdom
and the Netherlands and comprise crude oil and natural gas exploration,
production, processing, transmission and storage.
The sale is subject to third party and
regulatory approvals and the companies currently expect the sale to complete in
Bob Dudley, BP group chief executive, said: “This transaction is in line with
BP’s strategy to focus on a smaller number of higher-value assets with long-term
growth potential and to continue the simplification of our portfolio with a
further reduction of operated infrastructure and wells.”
Trevor Garlick, regional president, North Sea, said: “It has made strategic
sense for BP and for the buyer to combine our non-operated interests in the
Braes and Braemar fields with Harding, Maclure and Devenick. BP continues with a
focused investment programme in the UK and Norway, which includes planned
capital spending of $10 billion over five years.”
With today’s announcement, BP has now entered into agreements to sell assets
with a value of around $37 billion since the
beginning of 2010. BP expects to divest assets with a total value of $38 billion
between 2010 and 2013 as it focuses its business around the world on its
strengths and opportunities for growth.
Jefferies acted as financial adviser to BP in relation to this transaction.
Notes to editors
The base consideration is $1.058 billion of which a deposit of $632 million has
been paid. The anticipated future payments of $250 million are expected to be
realized over three years.
BP in the North Sea:
BP is a major investor in the North Sea (UK and Norway) with an extensive
portfolio of production from existing reservoirs, new projects under
development, and growth potential in undeveloped resources.
BP’s annual North Sea production averages around 200,000 barrels of oil
equivalent per day and the company has over three billion barrels of estimated
proven and contingent resource available in the region.
The company employs over 3,000 staff in its North Sea business and operates
around 30 oil and gas fields.
BP-operated producing assets include
Clair, Schiehallion, Foinaven and Magnus in the Shetland area;
Andrew, ETAP and Bruce in the UK’s central North Sea; and
Valhall, Ula, and Hod in Norway.
The company also operates the Sullom Voe Terminal in Shetland, the CATS gas
terminal in Teesside, and the Forties Pipeline System and Kinneil terminal.
BP plans to invest $10 billion (c £6.7billion) net over the next five years in
the North Sea – including major projects in the UK and in Norway.
Three major projects are currently underway in the UK – Clair Ridge, Quad 204 (Schiehallion),
and Kinnoull – and two in Norway – Skarv and the Valhall Redevelopment.
BP’s strategy to focus in the North Sea has already included the sale of the
Wytch Farm oil field in Dorset, the Southern Gas Assets and the sale of its
non-operated stakes in the Draugen, Alba and Britannia fields. The total value
of those assets sold, including this deal, is around $2.8 billion.
Brae complex, Braemar, Maclure, Harding, Devenick
売却：The assets included in the sale are BP’s
interests in the BP-operated Maclure, Harding and Devenick
fields and non-operated interests in the Brae complex
of fields and the Braemar field.
BP has an equity interest of
27.7% in the Marathon-operated Brae fields, a collection of oil and gas
fields -- South, Central, North and West Brae -- which started production in the
1970s, and 33.21% in the Marathon-operated East Brae field and production
Braemar is a subsea tie-back to the Marathon-operated East
Brae platform in which BP owns a 52% interest.
The Maclure oil field started production in 2002
and was developed via a single subsea gas-lifted well tied back to Maersk’s
Gryphon Floating Production Storage and Offloading vessel.
BP is the operator and owns 37.04%.
Harding has been a quality asset for BP, but it is
isolated from the rest of BP’s portfolio and will require significant investment
and resource to develop its gas reserves. BP’s major capital investment
programme is focused on other assets from which it can extract greater value in
the central and northern North Sea, west of Shetland and Norway.
BP owns 70% of Harding and is the operator.
Devenick, which was brought on-stream in September,
is a subsea tie-back to the East Brae platform. Given the inclusion of BP’s
interest in Braes in this deal it makes strategic sense to include Devenick in
the sale package. BP owns 88.7% of Devenick and is the
The base consideration will be allocated 50% to plant and machinery for tax
19 December 19, 2012
BP to Sell Yacheng Gas Field in China to KUFPEC
BP today announced that it has agreed the sale of its 34.3
per cent interest in the
gas field in the South China Sea to Kuwait Foreign Petroleum Exploration
Company (KUFPEC) for $308 million cash. Subject to regulatory, CNOOC and third
party approvals, BP expects the deal to close in the second half of 2013.
“This sale is part of BP’s ongoing global portfolio optimization,” said Chen
Liming, President of BP China. “BP remains committed to working with China to
contribute its deep expertise and oil and gas supply options in this important
emerging market.” The sale takes BP’s total divestments announced since 2010 to
Commercial production at Yacheng started in 1996. BP operated the field until 1
January, 2004, when it handed operatorship to its major
project partner CNOOC.
The field currently supplies natural gas for power generation to Castle Peak
Company Limited in Hong Kong via a 780-kilometre pipeline. Additional natural
gas, condensate and LPG are sold to customers on Hainan Island.
Following completion, the Yacheng partnership will consist of
CNOOC (51 per cent), and Kuwait Foreign Petroleum
Exploration Company (49 per cent).
Yacheng 13-1 Gas Field
In 1982, during the first licensing round in China that was open to western
companies, BP's heritage company Arco acquired
the Ying Ge Hai Block in the South China Sea. This led to the discovery of
the Yacheng 13-1 gas field in 1983, the
subsequent development of the field, and the commercial production of the
reserves in 1996. Yacheng 13-1 lies in 90 meters of water and is the largest
offshore natural gas field in China. It supplies natural gas for power
generation to Castle Peak Company Limited青山發電廠 in Hong Kong
via a 780-km pipeline (the 2nd longest offshore
pipeline in the world), and to Fuel & Chemical Corporation of Hainan
Province via a 60-km pipeline. The Yacheng Partnership consists of
BP 34.3%, CNOOC 51%, and Kuwait Foreign Petroleum
Exploration Company 14.7%.
After operating successfully for 8 years, BP handed over operatorship to its
major partner CNOOC on 1st January, 2004. Zhou Shouwei, president of CNOOC
Limited, gave a speech in which he said:"Yacheng is widely known in the
industry as a successful model of Sino-foreign co-operation. I would like to
take this opportunity to thank BP for leading the Yacheng operation and
sharing their valuable experience and skills on both the managerial and
operational fronts in the years which BP served as the operator."
BP was awarded interests in the
43/11 deepwater blocks in the South
China Sea in 2010 and 2012. These blocks are currently in the exploration phase.
Notes to editors
As one of the largest foreign investors in the Chinese energy sector, BP remains
committed in its long-term growth in China, for both upstream and downstream
Discovered in 1983, Yacheng 13-1 field is the largest offshore natural gas
producing field in China. The field is located in about 90 metres water depth
and is some 100 kilometres south of Hainan Island, in the South China Sea.
Feb 15, 2012 Reuters
BP hopes to drill new S.China Sea gas block
Oil giant BP Plc plans to start drilling at the 43/11
deepwater block in the South China Sea this year, after receiving approval
recently from the Chinese government, a company executive said on Wednesday.
"When we start depends on many factors, such as whether the drilling rig is
ready. We hope to start drilling there by the end of the year." BP China
President Chen Liming told Reuters.
BP received approval from the commerce ministry last week to explore and develop
natural gas resources at deepwater block 43/11, together with China National
Offshore Oil Corp (CNOOC) and Anadarko Petroleum Corp.
During the exploration phase, BP will have a 40.82 percent
working interest, Anadarko 50 percent and
CNOOC 9.18 percent. During development and
production, CNOOC will be operator with a 55.5 percent interest, BP with 20
percent and Anadarko will have 24.5 percent, according to BP China.
BP and CNOOC signed a cooperation agreement for deepwater exploration of block
43/11 in January last year, during Chinese Vice-Premier Li Keqiang's visit to
BP's other upstream assets in China include the under-producing gas field
Yacheng 13-1 in the South China Sea, and deepwater block 42/05, in which BP
purchased an intertest in September 2010, according to the company's website.
September 13 2010
BP Acquires Interest in Block 42/05 South China Sea
BP announced today that its acquisition of an interest in block 42/05 in the
South China Sea’s Pearl River Mouth Basin has been
approved by the Chinese Government. BP has acquired a
40.82 per cent interest in the block from Devon
Energy China, Ltd. The block covers an area of 6939 square kilometers.
Chevron acquired the remaining 59.18 per cent and
will be the operator during the exploration phase under the amendment agreements
to a production sharing contract with China National Offshore Oil Corporation (CNOOC).
CNOOC Limited, a listed arm of CNOOC, has the right to back-in to a level of 51%
during the development phase of the production sharing contract.
September 7, 2010
CNOOC Signed Amendment Agreements to
PSC for Three Deepwater Blocks
CNOOC Limited announced today
that its parent company, China National Offshore Oil
Corporation (“CNOOC”) has signed amendment agreements to the
Production Sharing Contracts (PSCs) with Chevron China
(“Chevron”), BP China (“BP”) and Devon Energy Corporation
(“Devon”) for deepwater blocks 42/05, 64/18 and 53/30 in
South China Sea. These agreements have been approved by the
Prior to this, Chevron
and BP signed Sale and Purchase Agreements with Devon for
the above blocks: Chevron acquired a 59.18% interest in
block 42/05 and a 100% interest in blocks 64/18 and 53/30
from Devon in the exploration phase；BP acquired the
remaining interest of Devon in block 42/05.
Block 42/05, located in
Baiyun Sag of Pearl River Mouth Basin in the Eastern South
China Sea, covers a total area of 6,939 square kilometers.
Blocks 64/18 and 53/30 are located in Qiong Dong Nan Basin
in the Western South China Sea with acreage of 7,712 and
6,313 square kilometers respectively. Water depth of the
three blocks ranges from 300 to 2,000 meters.
During the exploration
period, Chevron will act as the Operator in the three
blocks. CNOOC Limited has the right to participate in up to
a 51% interest in the event of any commercial discovery in
Mr. Zhu Weilin, Executive
Vice President of the Company and General Manager of the
Exploration Department commented, “We welcome Chevron and BP
to become our new partners in these blocks and look forward
to the joint exploration of the great deepwater potential in
the South China Sea.”
In 2005 and 2006, CNOOC
signed three PSCs with Devon for blocks 42/05, 64/18 and
BP to Buy Back $8 billion of Shares,
Returning its 2003 Investment in TNK-BP to Shareholders
BP announced today that it intends to carry out a share repurchase, or buy-back,
programme with a total value of up to $8 billion
Today’s decision to buy back shares follows the completion yesterday of the sale
of BP’s 50% interest in TNK-BP to Rosneft. The programme is expected to return
to BP shareholders an amount equivalent to the value of the company’s original
investment in TNK-BP.
In 2003 BP invested around
$8 billion in cash, shares and assets in the formation of
TNK-BP. Over the following decade BP received
a total of $19 billion in dividends from the joint
venture. BP sold its interest in TNK-BP to Rosneft, followed by a reinvestment
in Rosneft shares, for an overall consideration of $12.48
billion in cash (including $0.71 billion in TNK-BP dividends received by
BP in December 2012) together with shares representing
18.5% of Rosneft. As a result, BP now holds a
19.75% interest in Rosneft.
BP Group Chief Executive Bob Dudley said: “BP is moving on to the next phase of
its business in Russia, becoming the largest private shareholder in Rosneft,
Russia’s leading oil company. In the process we have also released cash,
equivalent to at least six years of BP’s anticipated future dividends from TNK-BP.
We look forward now to working closely with Rosneft and together developing
opportunities to create value for both companies.”
Dudley said that the size of the proposed buy-back programme, which is expected
to exceed that required to offset the earnings per share dilution expected as a
result of the sale of TNK-BP, also reflected the reduction in BP’s asset base
following its major $38 billion divestment programme over the past three years.
BP intends to retain the additional cash consideration of
$4.48 billion received from the sale of its interest in TNK-BP
to reduce BP Group debt as part of its continuing
commitment to maintaining a strong balance sheet.
BP Chairman Carl-Henric Svanberg said: “We expect our stake in Rosneft will
generate long-term value for BP and its shareholders. But this buy-back
programme should also allow our shareholders to see benefits in the near-term
from the value we have realised by reshaping our Russian business.”
Notes to editors:
When its intention to sell its interest in TNK-BP to Rosneft was announced in
October 2012, BP said that it intended to use the cash proceeds from the sale
to, at minimum, offset any dilution to earnings per share as a result of the
This buy-back programme will be effected in accordance with BP's general
authority to repurchase shares granted by its shareholders at BP’s 2012 Annual
General Meeting and Chapter 12 of the UK Listing Rules. The shares purchased
will be cancelled. The aim of the programme is to reduce the issued share
capital of BP p.l.c. The buy-back programme may be suspended at any time.
The pace at which the buy-back programme is executed is determined by market
capacity, as well as applicable regulations. At current volumes, BP estimates
the buy-back programme could take 12 to 18 months to complete.
December 16 2013 BP
The Government of the Sultanate of Oman
Gives the Go-Ahead to BP for the Khazzan Project
The Government of the Sultanate of Oman
and BP have today signed a gas sales agreement and an amended production
sharing agreement for the development of the
Khazzan field, with BP as operator.
The full field development will involve
a drilling programme of around 300 wells over 15 years to deliver
plateau production of one billion cubic feet (28.3
million cubic metres) of gas per day and 25,000 barrels per day of gas
condensate. This volume is equivalent to around a third of Oman’s
total daily domestic gas supply and will make a significant contribution
to ensuring continuing stable supplies from domestic sources. The total
investment in the full field development is around $16 billion, which
includes the investment made to date in the appraisal of the resource
and early well test programme.
The Khazzan project represents the first
phase in the development of one of the Middle East region’s largest
unconventional tight gas accumulations, which has the potential
to be a major new source of gas supply for Oman over many decades.
His Excellency Dr Mohammed Al Rumhy,
Minister of Oil and Gas of the Sultanate of Oman, said: “Today’s signing
is an important step in the Sultanate of Oman’s plans to meet growing
demand for energy over the coming decades and to contribute to economic
development in Oman. The Khazzan project is the largest new upstream
project in Oman and a pioneering development in the region in unlocking
technically challenging tight gas through technology.”
HE Al Rumhy added: “As well as
providing additional energy supply for Oman, the Khazzan project will
generate wider direct benefit with the development of Omani employees
and delivering in country value through the development of the local
Bob Dudley, BP Group Chief Executive,
said: “We are very pleased to be going ahead with this major project,
which is very important for both Oman and for BP. This enables BP to
bring to Oman the experience it has built up in tight gas production
over many decades. This is one more example of BP developing a long term
gas supply chain, in this case to bring energy to customers in Oman for
decades to come.”
David Dalton, President of BP in the
Middle East Region, added: “The sanction of the Khazzan project follows
an extensive and rigorous appraisal programme. This has given BP and the
Government of the Sultanate of Oman confidence in the strength of the
project and our ability to deliver long term gas supply to Oman.”
Construction work for the Khazzan
project, located in the South of Block 61, will begin in 2014, and first
gas is expected in late 2017. Gas production is expected to ramp up to
plateau in 2018 and in total the project is expected to develop around 7
trillion cubic feet (tcf) of gas, which will require BP to successfully
deploy new technologies.
The amended exploration and production
sharing agreement and a gas sales agreement extend for an initial 30
years and also provide for the additional appraisal of further gas
resources within Block 61, which are expected to be developed in
subsequent project phases.
The full field development involves a 15-year drilling programme, with
production tied back to a new central processing facility in Block 61
via a 500 kilometre long gathering system.
The Government of the Sultanate of
Oman also announced the intent of the state-owned
Oman Oil Company Exploration & Production (OOCEP) to participate with a
40 per cent stake in Block 61. Salim Al-Sibani, CEO of OOCEP,
noted: “We are delighted to work with BP on this challenging project to
supply gas to the country. Unlocking unconventional resource will help
to meet Oman’s future energy needs. We are very pleased to be part of
this exciting journey and to build the required unconventional skills
across the upstream sector.”
At the same time, BP and Oman Oil
Company (OOC) also announced the signing of a non-binding memorandum of
understanding (MoU) to develop the world’s first
acetic acid manufacturing plant using BP’s revolutionary new SaaBre™
process, which was first announced in November 2013. The MoU
covers joint economic evaluation and a detailed feasibility study for a
proposed one million tonne per year acetic acid
plant in the Special Economic Zone in Duqm,
Oman. Subject to negotiating definitive agreements, it is
anticipated to lead to a joint venture investment, with start-up
expected in 2019.
Notes to editors
Khazzan development follows an extensive appraisal programme that began
after BP signed an agreement with the Government in January 2007 for the
appraisal and development of Block 61.
Block 61 contains significant volume
of unconventional gas, distributed across several reservoirs, with
estimates of total gas in place of up to 100 trillion cubic feet. This
first phase of the Khazzan field development plan will involve drilling
around 300 wells, mostly horizontal, using eight drilling rigs over 15
Since 2007, BP has carried out one of
its largest-ever onshore seismic surveys covering the
2,800-square-kilometre Block 61 area. BP began appraisal well drilling
activities in 2008 and has drilled 11 wells, including three horizontal
wells. Owing to the tight nature of rocks in Khazzan reservoirs, the
wells need to be hydraulically stimulated to stimulate production and
flow gas at target rates.
In March 2011 BP Oman achieved a
milestone with the first gas delivery to the government from its
extended well test project in Block 61. This successful pilot project
has helped to demonstrate the potential of a much larger scale
BP has focused on health and safety
throughout the appraisal programme and together with its contractors has
achieved over 9.8 million man-hours of work without a major safety
BP is preparing for the full field
development of Khazzan on a number of fronts, most recently with the
launch of its multi-year technicians development programme for Omani
nationals that will qualify up to 150 technicians to support the long
term operations of the Khazzan Project. BP is also investing in Omani
capability development for graduates and mid-career staff. Over 70 per
cent of BP’s staff in Oman are Omani nationals.
BP to invest $15 billion to develop
Oman tight gas
Khazzan tight gas project in Block 61
is one of the company’s top five upstream
projects globally. BP’s Khazzan project is also
the first and largest of its kind in the Middle East.
In January 2007
BP signed a major exploration and
production sharing agreement with the Government
of Oman for the appraisal and development of
Block 61 and the Khazzan and Makarem gas fields.
The agreement covers an area of some
2,800 km² in central Oman,
which contains a number of tight gas reservoirs
which were first discovered in the 1990s.
in September 2008. Then, in March
2011 BP Oman achieved a major milestone with the
first gas export from the Extended Well
Test project delivered to the government-owned
gas plant at Saih Rawl.
The development of the
tight gas reservoirs is a significant technical challenge
owing to the low porosity of the reservoir rock.
BP is applying
innovative technology to unlock this tight gas,
drilling horizontal wells and using
hydraulic fracturing technologies to force cracks in the
rock to encourage flow.
BP Oman has
announced in Muscat to award several contracts
for the appraisal of the Khazzan & Makarem gas fields
in Oman’s Block 61.
Rosneft and BP Sign Agreement on Development
of Domanik Formations
Rosneft and BP Exploration Operating Company Limited signed a Heads of Agreement
on Domanik formations. The document was signed
today within the framework of the St. Petersburg International Economic Forum by
Rosneft President and Chairman of the Management Board Igor Sechin and BP Russia
President David Campbell.
The signature ceremony was led by President of the Russian Federation Vladimir
The Heads of Agreement provides for implementation of a joint pilot project by
Rosneft and BP relating to the Domanik formations and, in the event of success,
the possible development of unconventional Domanik resources in the Volga-Urals
region. The joint venture company (Rosneft 51%, BP 49%)
will be incorporated in Russia.
BP will compensate part of the historical costs to Rosneft for exploration of
the Domanik formations and will provide carry financing of up to US $300 million
for the pilot programme, which will be conducted in two phases at licence blocks
in the Orenburg Region.
Jun 27, 2014 Reuters
Russia's Rosneft signs further oil products
supply deal with BP
* Rosneft to get at least $1.5 bln in pre-payment
* Follows BP-Rosneft shale oil exploration deal
* Sechin wants a motorbike trip across US (Adds Sechin quotes, banks)
Rosneft signed on Friday its second major agreement with BP since sanctions were
imposed on the Russian oil company's chief executive, a close ally of President
Vladimir Putin, over Russia's involvement in the Ukraine crisis.
The five-year agreement will supply BP with up to 12
million tonnes of refined oil products and involves a
pre-payment of at least $1.5 billion arranged by
leading global financial institutions, Rosneft said.
Rosneft refined nearly 90 million tonnes of oil last year, according to company
Some Western firms have been wary of investment and business in Russia since
sanctions were imposed over the crisis in Ukraine, where Moscow denies
accusations of orchestrating a rebellion by pro-Russian separatists.
But the sanctions have had only a limited
impact on the Russian energy industry, a cornerstone of the country's
$2-trillion economy, resulting mostly in higher borrowing costs for domestic
Since the sanctions were imposed, executives from Total , BP, Statoil and
ExxonMobil have visited Russia, underlining the importance they attach to
business with the world's leading oil producer with current output of around
10.5 million barrels per day (bpd).
Last year, Rosneft announced deals worth more than $15 billion to sell crude oil
and other products to BP, which now owns almost a fifth of Rosneft following
Rosneft's acquisition of Anglo-Russian oil firm TNK-BP last year.
Friday's signing also follows an
agreement by BP and Rosneft in May to jointly explore in Russia for
hard-to-recover shale oil.
Such deals do not violate sanctions over the Ukraine crisis because
Rosneft has not been included on any sanctions list,
but Rosneft's chief executive Igor Sechin had a visa ban
and asset freeze slapped on him by the United States after Russia annexed
the Black Sea peninsula of Crimea from Ukraine in March.
"I am working here with Rosneft. It's a business between the companies. I don't
comment on personal sanctions," BP's chief executive Bob Dudley told reporters
in Khabarovsk in Russia's far east after attending the signing ceremony with
other members of the Rosneft board of directors.
Sechin told reporters that he had no accounts or assets in the United States but
he felt the impact from sanctions.
"Sanctions don't allow me to see the beauty of their (U.S.) nature, to learn
their culture, show my kids their nature," he said. "I wanted to take a
motorbike trip across America but this decision denies me such an opportunity."
Eight banks have signed a $2-billion prepayment
facility与信枠 backing the long-term delivery of crude oil products between
Russian oil giant Rosneft and BP, Rosneft said on Friday.
The banks include Deutsche Bank, Bank of China, Societe Generale, Bank of
Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corporation, two banking sources
close to the deal said.
Rosneft also said the prepayment facility will increase further as several other
banks also have shown interest in joining the deal, adding that supplies to BP
could start next month.
Bankers earlier this month said partly state-owned UK lender Lloyds Bank had
pulled out of the $1.5-$2 billion trade finance deal to avoid risking any
political embarrassment for its government.
Under the terms of the latest deal, Rosneft said oil product deliveries could be
substituted for supplies of oil but gave no explanation of the circumstances
under which this could happen.
Such pre-payment supply deals have raised billions of dollars for Rosneft, which
borrowed $30.1 billion in two separate loans in 2012 and 2013 to help finance
last year's $55 billion acquisition of TNK-BP, once Russia's third largest oil
Last year Rosneft also agreed an $8.32 billion loan with commodity traders
Glencore and Vitol and a $1.5 billion pre-payment loan with Swiss-based trading
However, some Russian energy companies have recently been talking to their
customers about a possible switch to using currencies other than the U.S. dollar
in transactions to minimise sanction-related risks.
Other companies could also now follow the example of Surgutneftegas, Russia's
fourth-biggest oil producer with an average daily output of 1.2 million barrels
of crude, which according to its accounts has stockpiled over 1 trillion roubles
($30 billion) of cash instead of paying out higher dividends or making large
Meanwhile Lukoil, Russia's second-biggest oil producer, has postponed an up to
$2 billion Eurobond issue until the autumn because of a spike in borrowing
costs. ($1 = 33.6595 Russian roubles)
BP Statement on Phase 2 Decision in Gulf Oil
Today the United States District Court for
the Eastern District of Louisiana ruled on the issues raised in the Phase 2
trial of the Deepwater Horizon case: the quantification of oil spilled and BP’s
source control efforts following the accident.
The Court found that
3.19 million barrels of oil were discharged into the Gulf of Mexico and
therefore subject to a Clean Water Act (CWA) penalty.
In addition, the Court found that BP was not grossly
negligent in its source control efforts.
No penalty has yet been determined. The decisions in the Phase 1 and Phase 2
trials represent steps in the process of assessing a CWA penalty. The third
phase of the CWA trial, currently scheduled to begin in the Court on Tuesday, 20
January, 2015, will address the penalty to be assessed.
During the penalty proceedings, the Court is required to consider the
application of eight statutory factors, including
the violator’s efforts to minimize or mitigate the effects of the spill:
the seriousness of the violation or violations;
the nature, extent, and degree of success of any efforts of the violator to
minimize or mitigate the effects of the discharge;
the economic impact of the penalty on the violator;
the economic benefit to the violator, if any, resulting from the violation;
the degree of culpability involved;
any other penalty for the same incident;
any history of certain types of prior violations; and any other matters as
justice may require.
BP believes that considering all the
statutory penalty factors together weighs in favor of a penalty at the lower end
of the statutory range.
BP is continuing to review the Court’s decision.
District Court のCarl Barbier
裁判官は9月4日、BPに「重大な過失」（gross negligence ）と「故意の不法行為」（willful
BP Finalises Deal To Develop Egypt’s West
Nile Delta Gas Fields
BP announces the signing of the West Nile Delta project todevelop 5 tcf of gas
resources and 55 mmbbls of condensates
BP today announced that it has signed the final agreements of the West Nile
Delta project to develop 5 trillion cubic feet (tcf) of gas resources and 55
million barrels (mmbbls) of condensates with an estimated investment of around
$12 billion by BP and its partner. The project underlines BP’s commitment to the
Egyptian market and is a vote of confidence in Egypt’s investment climate and
Production from WND is expected to reach up to 1.2 billion cubic feet a day (bcf/d),
equivalent to about 25 per cent of Egypt’s current gas production and
significantly contribute to increasing the supply of energy in Egypt. All the
produced gas will be fed into the country’s national gas grid, helping to meet
the anticipated growth in local demand for energy. Production is expected to
start in 2017.
“BP is proud of its record in Egypt over the past 50 years and we are looking
forward to many more years in the country. The WND project investment is the
largest foreign direct investment in Egypt, and demonstrates our continued
confidence in Egypt and our commitment to unlock its energy potential. WND
production is key to Egypt’s energy security,” said Bob Dudley, BP Group Chief
Gas will be produced from two BP-operated offshore concession blocks, North
Alexandria and West Mediterranean Deepwater. BP believes that there is the
potential through future exploration to add a further 5-7 tcf which could boost
WND production with additional investments.
Commenting on the project, Hesham Mekawi, BP North Africa Regional President
said, “This is a critical milestone in the Egyptian oil and gas history. It
marks the start of a major national project to add significant production to the
domestic market. BP expects to double its current gas supply to the Egyptian
domestic market during this decade when the WND project reaches its peak
production. BP will also continue to invest in our existing oil operations at
the Gulf of Suez (through GUPCO) and gas operations in the East Nile Delta
(through Pharaonic Petroleum Co.), as well as progressing our recently
discovered resources to allow for the next new major development after WND.”
The scale of investment and activities of the WND project are expected to
significantly contribute to the growth of petroleum-related industries and to
Egyptian employment. During the construction phase, the project is projected to
employ thousands of direct and indirect personnel. In line with BP’s commitment
to support the development of Egyptian capability, the WND project will
encourage technology transfer and know-how through training and on-the-job
development. This will help to create strategic national capabilities to unlock
the country’s future hydrocarbon potential.
As part of the WND project, BP will also undertake a social investment programme
directed to various sustainable development projects in coordination with the
local communities and utilizing local service providers.
This will be in addition to the project’s principal approach, which is focused
on increasing local labour, with a commitment to employ significant local labour
Notes to editors:
The West Nile Delta (WND) Major Project is a strategic project for BP where
BP has about 65 per cent equity in the project
The WND project concept maximises the utilisation of existing infrastructure:
BP-operated Taurus/Libra fields: this
will be a subsea development tied-in offshore to existing BG-operated
The BP-operated Giza/Fayoum & Raven fields: These are two deepwater long
distance tie-backs to the shore, where the existing Rosetta plant will be
modified for Giza/Fayoum and integrated with a new adjacent onshore plant
BP has a long and successful track record in
Egypt stretching back 50 years with investments exceeding $25 billion, making BP
one of the largest foreign investors in the country. In Egypt, BP’s business is
primarily in oil and gas exploration and production.
BP has made a series of discoveries in Egypt in recent years including Taurt
North, Seth South and Salmon and Rahamat, Satis, Hodoa, Notus and Salamat.
To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO),
BP’s joint venture (JV) Company with the Egyptian General Petroleum Company (EGPC),
has produced almost 40 per cent of Egypt’s entire oil production, and currently
produces almost 10 per cent of Egypt’s annual oil and condensate.
In addition, through joint ventures with EGPC/EGAS and IEOC (ENI) the Pharaonic
Petroleum Company (PhPC) and Petrobel BP currently produces close to 30 per cent
of Egypt's total gas.
BP is working to meet Egypt’s domestic market growth by actively exploring in
the Nile Delta and investing to add production from existing discoveries.
BP is a 33 per cent shareholder of an NGL plant extracting
LPG and propane, United Gas Derivatives Company (UGDC) in partnership
with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).
9 March 2015 BP
BP makes second significant gas discovery in Egypt’s East Mediterranean Sea
BP Egypt announced today another important gas discovery in the
North Damietta Offshore Concession in the East Nile
Delta. The “Atoll-1” deepwater exploration well,
currently being drilled using the 6th generation semi-submersible rig “Maersk
Discoverer,” has reached 6,400 metres depth and penetrated approximately 50
metres of gas pay in high quality Oligocene sandstones. Expected to be the
deepest well ever drilled in Egypt, the Atoll well still has another 1 kilometre
to drill to test the same reservoir section found to be gas bearing in BP’s
significant 2013 Salamat discovery, 15 kilometres
to the south.
Bob Dudley, BP Group Chief Executive, commented: “Success in Atoll further
increases our confidence in the quality of the Nile Delta as a world class gas
basin. This is the second significant discovery in the licence after Salamat.
The estimated potential in the concession exceeds 5 trillion cubic feet (tcf)
and we now have a positive starting point for the next possible major project in
Egypt after BP’s West Nile Delta project.”
Commenting on the discovery, Hesham Mekawi, BP North Africa Regional President
said: “The Atoll discovery is a great outcome for our second well in this core
exploration programme in the East Nile Delta. It demonstrates BP’s continuous
efforts to help in meeting Egypt’s energy demands by exploring the potential in
the offshore Nile Delta. We are proud of our commitment to unlock Egypt’s
exploration potential that requires large investments to utilise using the
latest drilling and seismic technologies.”
Atoll-1 was drilled in 923m water depth around 80km north of Damietta city, 15km
north of Salamat and only 45 km to the north west of Temsah offshore facilities.
BP has 100% equity in the discovery.
Notes to editors:
BP has a long and successful track record in Egypt stretching back 50 years with
investments exceeding $25 billion, making BP one of the largest foreign
investors in the country. In Egypt, BP's business is primarily in oil and gas
exploration and production.
To date, BP Egypt, in collaboration with the Gulf of Suez
Petroleum Company (GUPCO), BP's joint venture (JV)
Company with the Egyptian General Petroleum Company (EGPC), has produced
almost 40% of Egypt's entire oil production, and currently produces almost 10%
of Egypt's annual oil and condensate production.
In addition, through BP's JVs with EGPC/EGAS and IEOC (ENI), the
Pharaonic Petroleum Company (PhPC) and
Petrobel currently produce close to 30% of Egypt's
total gas production.
BP is working to meet Egypt's domestic market growth by actively exploring in
the Nile Delta and investing to add production from existing discoveries.
The West Nile Delta (WND) Major Project is a strategic project for BP and its
partner and is also critical to Egypt as it will provide more than one billion
cubic feet per day (25% of Egypt's current production) of gas.
BP is a 33% shareholder of an NGL plant extracting
LPG and propane, United Gas Derivatives Company (UGDC) in partnership with ENI/IEOC
and GASCO (the Egyptian midstream gas distribution company).
BP is also present in the downstream sector through Natural Gas Vehicles Company
(NGVC, BP 40%) which was established in September 1995 as the first company in
Africa and the Middle East to commercialize natural gas as an alternative fuel
09 September 2013
BP Discovers Gas in Salamat Well in Egypt
BP Egypt today announced a significant gas discovery in the East Nile Delta. The
deepwater exploration well, named Salamat, is the
deepest well ever drilled in the Nile Delta. It is the first well in the North
Damietta Offshore concession granted in February 2010 and operated by BP.
The well was drilled using the sixth generation semi-submersible rig “Maersk
Discoverer”, owned by Maersk Drilling, in water depth of 649 metres and reaching
a total depth of around 7,000 metres. The wireline logs, fluid samples and
pressure data confirmed the presence of gas and condensate in 38m net of
Oligocene sands in Salamat. Further appraisal will be required to better define
the field resources and to evaluate the options for developing the discovery.
Mike Daly, Executive Vice President Exploration at BP, commented: “Success with
Salamat proves hydrocarbons in the centre of a 50-km long structure. With a
hydrocarbon column in excess of 180 metres, the discovery increases our
confidence in the materiality of the deep Oligocene play in the East Nile
Hesham Mekawi, BP Egypt Regional President said: “The Salamat discovery is a
great outcome for our first well in this core exploration programme in the East
Nile Delta. It shows our commitment to meeting Egypt’s energy needs by exploring
the deep potential offshore the Nile Delta. Standalone and tie-back to the
nearby Temsah infrastructure development options are currently being evaluated.”
The Salamat discovery is located around 75 kilometres north of Damietta city and
only 35 kilometres to the North West of the Temsah offshore facilities. BP has
100% equity in the discovery.
Notes to editors:
BP has a long and successful track record in Egypt stretching back 50 years,
with investments exceeding $20 billion, making BP one of the largest foreign
investors in the country. BP’s business in Egypt is primarily in oil and gas
exploration and production.
To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO),
BP’s joint venture (JV) company with the Egyptian General Petroleum Company (EGPC),
has produced almost 40% of Egypt’s entire oil production and currently produces
almost 15% of Egypt’s annual oil and condensates production.
In addition, through BP’s second JV with EGPC/EGAS, the Pharonic Petroleum
Company (PhPC), and together with our partners, BP currently produces more than
30% of Egypt's total gas production.
BP is working to meet Egypt’s domestic market growth by actively exploring in
the Nile Delta and investing to add production from existing discoveries
The West Nile Delta (WND) major project is BP’s first operation in Egypt through
a BP operating company. With its partner RWE, WND represents a major new source
of gas for the domestic market in Egypt.
BP is a 33% shareholder of United Gas Derivatives Company (UGDC), a natural gas
liquids plant extracting LPG and propane, in partnership with ENI/IEOC and GASCO
(the Egyptian midstream gas distribution company).
BP is also present in the downstream sector through Natural Gas Vehicles Company
(NGVC, BP 40%) which was established in September 1995 as the first company in
Africa and the Middle East to commercialize natural gas as an alternative fuel
Rosneft and BP today signed several
agreements strengthening the long term strategic relationship between
the two companies, at the St. Petersburg International Economic Forum.
Rosneft and BP signed final binding
agreements for Rosneft’s sale to BP of a 20 per
cent share of Taas-Yuryakh Neftegazodobycha (Taas), creating a
new joint venture in East Siberia. The document was signed by Rosneft
Management Board Chairman Igor Sechin and President of BP Russia David
|February 2, 2012
Rosneft and Sberbank reach agreement in principle on Taas-Yuryakh
Rosneft and Sberbank signed a tentative agreement on the acquisition
by Rosneft of a 35.3 percent stake in Taas-Yuryakh Neftegazodobycha.
Taas-Yuryakh Neftegazodobycha holds production licences for the
Srednebotuobinsk oil and gas condensate field, which is situated 160
km north of the ESPO pipeline. Recoverable oil reserves of the field
are estimated at 90.9 million tonnes of C1 and 38.9 million tonnes
of С2 category. Due to its size the field was put on the list of
Fields of Federal Importance on March 18, 2010. The deal price was
set at $444 million, which equals to the historical cost incurred by
“The acquisition is a major step forward in strengthening Rosneft’s
world-class reserve base in Eastern Siberia and ensuring deliveries
to the Eastern Siberia – Pacific Ocean pipeline. Together with the
Yurubcheno- Tokhomsk field, these projects will form the foundation
of the Company’s East-Siberian production cluster within the next
few years. After closing the deal with Sberbank, Rosneft will be
working with other shareholders of Taas-Yuryakh Neftegazodobycha to
ensure the success of the project. The company will also reach out
to federal authorities to make sure that necessary fiscal conditions
are in place for the project to be profitable,” said Rosneft
President Eduard Khudaynatov.
Until 2009, the 35.3 percent stake in Taas-Yuryakh Neftegazodobycha
was held by Urals Energy, which in the course of the financial
crisis in 2008-2009 had to hand over the asset to Sberbank Capital
to cover overdue loans. The remaining stakes are held by
Yakut Energy Limited (37.4 percent) and
Finfund Limited (16.8 percent) as well as Limenitis Holding Limited
(10.5 percent). The latter is part of the Ashmore Investment
Rosneft completes takeover of
East Siberial crude producer Taas-Yuryakh
Russia's largest crude producer
Rosneft has completed its takeover of East Siberian crude producer
Taas-Yuryakh Neftegazodobycha, the company said in a statement
Rosneft, which now owns 100% of Taas-Yuryakh Neftegazodobycha, did
not give a price for the transaction. Prior to the deal Rosneft held
35.3%. The other shareholders in Taas-Yuryakh Neftegazodobycha were
Yakut Energy, with a 37.4% stake, Finfund (16.8%) and Limenitis
The venture will further develop the
Srednebotuobinskoye oil and gas condensate field
which is one of the largest fields in eastern Siberia, currently
producing about 20,000 barrels a day. The
Taas venture will also undertake the development of suitable
infrastructure for further exploration and development of the region’s
reserves. Related to this, Rosneft and BP will also jointly undertake
the exploration of an associated Area of Mutual Interest (AMI) in the
region, covering approximately 115,000 square kilometres.
Commenting on the signing, Igor
Sechin said: “Eastern Siberia is a priority area for Rosneft.
Taas-Yuryakh Neftegazodobycha is carrying out a set of actions with the
aim to further expand local infrastructure and boost production
capacities. I’m glad that our cooperation with BP is developing in such
a promising area.”
David Campbell said: “I am pleased we
have been able to conclude this transaction. It further deepens our
relationship with Rosneft and underlines BP’s position and strategy as a
successful long term investor in Russia. BP will continue to seek
attractive investment opportunities to develop Russia’s substantial
resources, whilst continuing to comply with international sanctions.”
Rosneft and BP have also agreed
jointly to explore two additional Areas of Mutual Interest (AMIs) in the
West Siberian and Yenisey-Khatanga basins covering a combined area of
about 260,000 square kilometers. This agreement commits BP and Rosneft
jointly to conduct studies and, if successful, establish new joint
ventures to obtain licences and perform exploration activities. Any
joint ventures will be owned 51 per cent by Rosneft and 49 per cent by
BP. As part of this agreement Rosneft and BP will also form a joint
venture to carry out further appraisal work on the 2009 Rosneft-discovered
Baikalovskiy field inside the Yenisey-Khatanga AMI. Exploration
activities in the two AMIs will include screening studies, acquisition
of seismic data, and drilling of exploration wells as new licences are
Within the framework of the Forum,
Igor Sechin and David Campbell also signed a heads of terms to pursue a
reorganization of the German Ruhr Oel GmbH (ROG) refining joint venture.
The document envisages restructuring the JV by dividing between the
parties shares in four refineries and associated infrastructure.
As a result of the planned deal
Rosneft will double its shareholding in the Bayernoil refinery – to 25%
from 12.5%; the MiRO refinery – to 24% from 12%; and the PCK Raffinerie
– to 37.5% from 18.75%.
BP in exchange will consolidate 100%
of the equity of the Gelsenkirchen refinery and the solvent production
facility DHC Solvent Chemie. The closing of the deal is subject to the
fulfillment of conditions precedent, which include inter alia regulatory
The restructuring of Ruhr Oel GmbH
will enable Rosneft and BP to re-focus their refining and petrochemicals
strategies in Germany.
Commenting on the signing Igor Sechin
said: “This agreement demonstrates Rosneft’s shift to a fundamentally
new level of operations in Western Europe and confirms the Company’s
commitment to the creation of the most efficient marketing structure,
aimed at the creation of additional value for our shareholders. We are
thankful to BP, our strategic partner, for the lessons learned during
our joint work within ROG and their support for our new beginnings.”
David Campbell said “Our sole
ownership of the Gelsenkirchen refinery will re-focus our refining
business in the heart of Europe and is in line with our drive for
greater simplification and efficiency.”
Notes to Editors
In November 2014, Taas-Yuryakh
Neftegazodobycha produced its one millionth ton of oil after the
Srednebotuobinskoye oil and gas condensate field was commissioned in
October 2013, owing this result to efficient geological and technical
measures, and the construction of wells and infrastructure, including
oil and gas containment and treatment units and a delivery/acceptance
Also the company constructed a 169
km-long pipeline to the Eastern Siberia-Pacific Ocean oil pipeline
system. Today there are as many as 51 producing wells, which deliver
about 2.4 thousand tons of crude every day.
Taas-Yuryakh Neftegazodobycha, a
Rosneft subsidiary, operates the Srednebotuobinskoye oil and gas
condensate field, which is located in the Sakha Republic, Yakutia. The
field’s reserves under Taas-Yuryakh Neftegazodobycha’s С1+С2 licensed
areas total 133 mln tons of liquid hydrocarbons and 137 bcm of gas.
In May 2011, Rosneft acquired a 50%
share in a joint venture Ruhr Oel GmbH (ROG) in Germany. ROG holds
stakes in four refineries in Germany (Gelsenkirchen – 100%, Bayernoil –
25%; MiRO – 24%; PCK– 37.5%). Moreover the joint venture holds stakes in
five pipelines and marine crude oil terminals in the North, Baltic,
Mediterranean and Adriatic Seas. Rosneft`s partner in the JV on a parity
basis is BP Europa SE. ROG is a German
market leader in terms of refining volumes – 21.2 mln tonnes in 2013.
In October 2010 Rosneft reached
an agreement with the Venezuelan national oil company (PDVSA) on
acquisition of 50% of Ruhr Oel GmbH for USD 1.6 bln (not including
working capital). Ruhr Oel owns stakes in four refineries in
Germany. The acquisition gives Rosneft a refining partnership with
BP, which owns the other half of Ruhr Oel.
Total refining capacities of Ruhr
Oel are 23.2 mln tonnes (the net share of Rosneft is 11.6 mln tonnes),
which represents about 20% of total refining capacities in Germany.
The refineries have advantageous geographical locations and a high
complexity index. They are also in excellent condition and fully
match the latest requirements for product quality. The share of
Urals crude in total refining volumes of Ruhr Oel in 2010 was about
50% and this level may be increased in the future. The Gelsenkirchen
Refinery, which is fully owned by Ruhr Oel, has a 3.9 mln tonne
petrochemical block producing 250 different products. Rosneft will
also have access to the wholesale margin of AMV, which is owned by
BP and specializes on wholesale marketing of products on the German
The acquisition will increase
Rosneft’s refining-to-production ratio, give the Company exposure to
the German petroleum product market, and offer access to BP’s
know-how in refining and management.
BP Refining & Petrochemicals,
BP RP for short, is a wholly owned subsidiary of Deutsche BP, on
whose behalf it operates of one of the biggest refinery and
petrochemicals systems in Europe. This system, known as Ruhr Oel,
is a joint venture between BP and Venezuela’s PdVSA. Each
partner has a 50% stake in Ruhr Oel
In 2014, overall Rosneft crude oil
supplies to Germany amounted to 20.3 million tonnes, which is almost a
quarter of all oil imported to Germany. In addition to the 265,000 b/d
Gelsenkirchen refinery, BP will still own and operate the 95,000 b/d
Lingen refinery which was not a part of the ROG venture and will
maintain a separate 10 per cent share in the 217,000 b/d Bayernoil
June 19, 2015
Rosneft and Skyland Petroleum to Consider Joint Development of
Rosneft and Skyland Petroleum Group (SPG) signed Heads of Agreement regarding
potential joint venture based on “Taas-Yuryakh Neftegazodobycha” at the
St.Petersburg International Economic Forum.
The agreement provides for Rosneft’s sale of up to 29 per
cent share of Taas-Yuryakh Neftegazodobycha to Skyland Petroleum Group
and creating joint venture for development of Srednebotuobinskoye oil and gas
Development of Srednebotuobinskoye field – one of the largest fields in Eastern
Siberia - will allow to create infrastructure for further exploration and
production in the region.
Notes for editors:
Skyland Petroleum Group has extensive experience in the regions of former Soviet
Union, South Asia and the Middle East. The Company's financial partners based in
East Asia provide a stable foundation in order for the team to successfully
explore and produce properties globally.
Rosneft also signed final binding agreements for sale of a 20 per cent share of
Taas-Yuryakh Neftegazodobycha (Taas) to BP at the St.Petersburg International
In November 2014, Taas-Yuryakh Neftegazodobycha produced its one millionth ton
of oil after the Srednebotuobinskoye oil and gas condensate field was
commissioned in October 2013, owing this result to efficient geological and
technical measures, and the construction of wells and infrastructure, including
oil and gas containment and treatment units and a delivery/acceptance station.
Also the company constructed a 169 km-long pipeline to the Eastern
Siberia-Pacific Ocean oil pipeline system. Today there are as many as 51
producing wells, which deliver about 2.4 thousand tons of crude every day.
Taas-Yuryakh Neftegazodobycha, a Rosneft subsidiary, operates the
Srednebotuobinskoye oil and gas condensate field, which is located in the Sakha
Republic, Yakutia. The field’s reserves under Taas-Yuryakh Neftegazodobycha’s
С1+С2 licensed areas total 133 mln tons of liquid hydrocarbons and 137 bcm of
Skyland Petroleum Corporation is a new
oil and gas exploration and production company established in January 2015
by the British company, Vazon Energy and additional technical staff. The
Company's financial partners based in East Asia provide a stable foundation
in order for the team to successfully explore and produce properties
Currently Skyland is focused on acquiring projects in the regions around
China, particularly the former Soviet Union, South Asia and the Middle East
as the technical team has extensive experience in these areas. This,
combined with the expertise and financial strength of its Asian partners,
Skyland is keen to grow into a large oil and gas company, supplying East
Asian and world markets and ultimately securing an important role in the
flow of energy to the developing economies of this rapidly growing region.
Vazon Energy Limited was founded in 1997 and is an energy management
business focused on oil and gas as well as other energy and resource
17 June 2016 BP
BP and Rosneft create joint venture to
develop prospective resources in East and West Siberia
Rosneft and BP have today signed final binding agreements to create a new joint
venture, Yermak Neftegaz LLC, to conduct
exploration in the West Siberian and Yenisey-Khatanga basins in the Russian
Federation. The document was signed at the XX St. Petersburg International
Economic Forum (SPIEF) by Rosneft CEO Igor Sechin and President of BP Russia
The joint venture will focus on onshore exploration of two Areas of Mutual
Interest (AMIs) in the West Siberian and Yenisey-Khatanga
basins covering a combined area of about 260,000 square kilometers.
Yermak Neftegaz will be
owned 51 per cent by Rosneft and 49 per cent by BP.
In the initial stage, the joint venture will carry out further appraisal work on
the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI
and on exploration of Zapadno-Yarudeiskoye, Kheiginskoye and Anomalnoye licenses
in the West Siberian AMI.
Exploration activities in the two AMIs will include regional research,
acquisition of seismic data and drilling of exploration wells, with the
beginning of field works anticipated in the winter season of 2016 / 2017. The
preliminary agreement relating to this project was signed at SPIEF in 2015.
Igor Sechin, Rosneft CEO, said after signing:
“These agreements serve as an example of full scale cooperation with BP,
Rosneft’s strategic partner and largest minority shareholder. After creation of
the Taas-Yuryakh Neftegazodobycha LLC joint venture we are now broadening the
geography of our cooperation and creating a precedent which allows us to pursue
cooperation in partnership with leading international companies to implement
upstream projects at the largest Rosneft greenfield sites in West and East
David Campbell, President BP Russia, said: “This agreement and creation of a new
joint venture reinforces BP’s commitment to our strategic investment in Russia
and our long term partnership with Rosneft. In the current low oil price
environment we continue to look for opportunities for future growth.”
BP has committed to provide up to $300 million in two phases as its contribution
to the cost of the JV’s activities at the exploration stage. Rosneft will
contribute licenses and operational experience in West Siberia and Yenisey-Khatanga
with initial drilling to be performed by Rosneft subsidiaries.
August 9, 2016 Bloomberg
BP to sell stake in Chinese joint venture
BP, the UK energy group, is planning to sell one of its biggest Chinese
investments, by disposing of its 50 per cent stake in the
Secco petrochemicals plant near Shanghai.
SECCO Petrochemical Company ）
BP is the latest western oil company to
curtail activity in China, as energy groups reel from low crude and
petrochemical prices. China’s slow liberalisation of its energy sector has
Analysts said that the group’s move to exit the Secco plant made sense at a time
when Asia was “awash” with petrochemical supplies.
It also comes amid the UK company’s plans to sell between $3bn and $5bn worth of
assets this year. BP has made more than $50bn of divestments since 2011 to help
pay legal and clean-up bills following the 2010 Gulf of Mexico oil spill.
2012/12/3 BP、北海の石油・ガス資産を一部売却 一覧表
Sinopec, which also has a 50 per cent stake in the Secco joint venture,
said it was “researching” BP’s planned sale.
“We haven’t made any decision to buy or not,” said Sinopec. BP declined to
One analyst, who declined to be named, valued BP’s chemicals business, which is
largely Asia focused, at $3bn. This would imply that BP could secure $1bn-$2bn
for its Secco stake, the analyst added.
The Secco plant started operations about 10 years ago after $2.7bn of investment
by BP and Sinopec. It makes products including ethylene, which is a building
block for plastics.
While BP appears keen to scale back its activity in China, it has no plans to
exit the country.
The UK company has stakes in several big Chinese petrochemical sites as well as
a liquefied natural gas terminal. It does not have any oil or gas production in
Other western oil companies aiming to reduce their presence in China include
Total, which is seeking to sell its stake in the
Wepec refinery in the north-east of the country.
Royal Dutch Shell has shelved a shale gas joint venture in the south-west.
The petrochemical industry is now struggling with overcapacity. “Asia is awash
with petrochemicals supplies and in China, even though there is ample demand,
the oversupply is translating into lower domestic prices,” said Michal Meidan,
analyst at Energy Aspects.
“For BP, that must focus on costs in the current oil price cycle, this probably
While western energy companies have been retreating from Chinese oil
investments, Middle Eastern and Russian groups are keen on projects in the
Saudi Aramco, Saudi Arabia’s state-controlled oil company, has held on-off talks
with China National Petroleum Corporation, parent of PetroChina, about buying a
stake in its new refinery in Kunming. No deal has been finalised. Saudi Aramco
already holds a stake in a Quanzhou refinery.
Kuwait Petroleum Corp and National Iranian Oil Company have been in talks about
investing in Chinese refineries.
Rosneft, Russia’s state-controlled oil company, agreed in 2013 to establish a
refining joint venture in Tianjin, the port city near Beijing.
Last year ChemChina, the state-controlled chemicals and refining conglomerate,
offered a stake in some of its refineries to Rosneft.
BP today launched
PTAirTM, a new
low carbon1 and
carbon neutral PTA brand with three
products that offers a more sustainable solution for the polyester
value chain through a combination of world-class technology and
carbon management expertise.
A feature of PTAirTM is its
use of proprietary PX and PTA technology
which supports a 29% lower global
warming potential than the average European PTA production2.This
low carbon benefit has been independently assured by ERM CVS3.
In addition to this BP will also
be launching PTAirTM Neutral,
the world’s first certified carbon neutral PTA.
PTAirTM Neutral offers customers the opportunity to
purchase a carbon neutral product where associated CO2
equivalent emissions are mitigated through the investment in carbon
projects providing equivalent CO2 benefits and delivering
a net zero position. These projects, located around the world,
provide economic, social and environmental benefits to the
communities they serve.
Furthermore, through PTAirTM
Neutral Products customers have the opportunity to offset all of
their product footprint - over and above their PTA use - to achieve
full carbon neutrality across their product portfolio. This unique
offer is made possible through BP Target Neutral, BP’s longstanding,
not-for-profit carbon management programme.
PTAirTM is available
in Europe today and BP plans to roll out in the US and Asia in due
“Our exciting new PTAirTM
product offer is an important stepping stone towards a more
sustainable polyester chain,” said Luis Sierra, CEO, BP Aromatics.
“PTAirTM is available today in large quantities and
seamlessly fits into the current supply chain as a ‘drop in’
substitute for higher carbon, conventional PTA. Moreover it allows
our customers to economically achieve a meaningful carbon footprint
reduction using a raw material whose eco-profile has been
independently measured and verified by respected environmental
At today’s product launch, Rita
Griffin, BP’s COO, Petrochemicals, said, “Social responsibility and
carbon reduction are both high on the public agenda. Retailers and
brand owners are seeking more environmentally-friendly solutions
that will help reduce the carbon impact of their products and are
choosing brands that reflect their concerns for the environment.
Through the new BP PTAirTM product suite and
collaboration with our customers and our customers’ customers BP are
taking an important step to improving sustainability in the
polyester industry and moving towards a lower carbon future.”
- Based on an independent
cradle-to-gate Eco-profile by IFEU reviewed by ERM Certification
and Verification Services (ERM CVS). The study conducted by IFEU
uses Plastics Europe Methodology to compare the environmental
impact of 1 Kg of BP Geel PTA manufactured with BP integrated PX
(integrated production) to PTA produced in Europe as published
in the Environmental Product Declaration of the PET
Manufacturers in Europe February 2016.The study is in accordance
to ISO 14040-44 requirements. Data for both studies are based on
2013. Mass balance approach based on proportion of integrated PX
versus total consumption. PTAirTM is a trade mark of BP p.l.c
- Compared to the Global
Warming Potential (100 years) per 1 kg PTA as published in the
Environmental Product Declaration of the PET Manufacturers in
Europe February 2016. PTA produced by BP Aromatics NV in Geel is
included in the European study average and represents ~30% of
the total installed production capacity in Europe in the input
- The full assurance opinion
of ERM CVS can be found on www.bp.com/bp-geel/ptair/assurance
Note to editors
- BP is one of the world's
largest producers of purified terephthalic acid (PTA),
paraxylene (PX) and metaxylene (MX). As a global leader in the
aromatics business, BP maintains a high level of customer
satisfaction and hold leadership positions in cost and
- BP invented purified
terephthalic acid (PTA), which is used in both clothes and
polyethylene terephthalate (PET) bottles for water, soft drinks
and many other food and non-food packaging products.
- BP Target Neutral is
administered by BP as a not-for-profit scheme - and BP covers BP
Target Neutral’s operating costs. BP Target Neutral’s work is
governed by an independent advisory panel of prominent
environmental and industry experts. The panel ensures that all
policies and activities conform to best practice in carbon
management, and where possible will set new standards for that
Sep 15, 2016
BP to sell stake in Chinese joint venture
Three firms vie for BP's China petrochemicals plant: sources
At least three leading chemical companies are set to vie for BP's
stake in Chinese petrochemicals joint venture
SECCO which could fetch more than $2 billion, sources close
to the process said.
Offers for the 50 percent stake, the British oil and gas company's
largest investment in China, will be submitted in the coming days,
the sources said.
SK Chemicals Co Ltd, a pharmaceutical
unit of South Korea's SK Group; Austrian plastics group
Borealis, owned by Abu Dhabi's
sovereign wealth fund IPIC and oil and gas company OMV; and
privately-owned Switzerland-based chemicals company
Ineos are set to bid for the asset, the sources said,
speaking on condition of anonymity as the information isn't public.
At least one other company is considering entering the bidding
BP's partner in the joint venture, state-owned
China Petroleum & Chemical Corp (Sinopec), has a right of first
refusal. It has said it is discussing the conditions put
forward by BP, but has made no decision.
BP and the three potential bidders declined to comment or were not
immediately available to comment.
SECCO, a venture formed in 2001, produces ethylene and propylene,
which are used to make resins, plastics and synthetic rubbers.
BP, like other of the world's top oil companies, is in the midst of
a divestment drive in order to focus its business and boost cash
flow in the wake of the halving of oil prices since mid-2014. It is
planning sales worth $3-$5 billion this year.
The company has sold more than $50 billion of assets since a deadly
explosion on an oil rig in the Gulf of Mexico in 2010.
BP has sold several assets to Ineos in recent years, including the
Grangemouth refinery in Scotland as part of a $9 billion sale of the
olefins and refining business Innovene in 2005.
BP has taken the
decision not to progress its exploration drilling
programme in the Great Australian
Bight (GAB), offshore South Australia.
The decision follows the
review and refresh of BP’s upstream strategy earlier
this year, which included focusing exploration on
opportunities likely to create value in the near to
medium term, primarily building on BP’s significant
existing upstream positions.
BP has determined
that the GAB project will not be able to compete for
capital investment with other upstream opportunities in
its global portfolio in the foreseeable future.
“We have looked long
and hard at our exploration plans for the Great
Australian Bight but, in the current external
environment, we will only pursue frontier exploration
opportunities if they are competitive and aligned to our
strategic goals. After extensive and careful
consideration, this has proven not to be the case for
our project to explore in the Bight,” said Claire
Fitzpatrick, BP’s managing director for exploration and
“This decision isn’t
a result of a change in our view of the prospectivity of
the region, nor of the ongoing regulatory process run by
the independent regulator NOPSEMA. It is an outcome of
our strategy and the relative competitiveness of this
project in our portfolio.”
Fitzpatrick said BP
has informed federal and state governments of its
“This decision has
been incredibly difficult and we acknowledge it will be
felt across the South Australia region. We have made
significant progress with preparations for drilling in
the Bight with the support of communities and federal,
state and local governments. We acknowledge our
commitments and obligations and our priority now is to
work with government and community stakeholders to
identify alternative ways of honouring these.”
BP has also consulted
with its joint venture partner,
Statoil, who fully understand BP’s change in
strategic direction and accept BP’s decision.
“BP is a long-term,
significant investor in Australia, most visibly through
our retail network and refinery and also as partners in
the North West Shelf and Browse ventures,” added
Fitzpatrick. ”We expect to continue to consider further
opportunities to invest and grow our business here.”
Notes to editors
BP was awarded
exploration licences for four blocks in the Ceduna area
of the GAB in January 2011. Seismic data was acquired in
the area in late 2011-early 2012.
Statoil acquired a 30% interest in the licences in 2013,
BP remained operator with 70% interest.
BP has a contract
with Diamond Offshore Drilling for the provision of a
new Moss CS60E design semisubmersible drilling rig,
which Diamond commissioned Hyundai Heavy Industries to
build and is specially designed for use in deep water
and harsh marine environments. BP’s decision does not
impact this rig contract.
BP and Rosneft
create joint venture to develop prospective resources in East and
Rosneft and BP announce
the completion of the deal to create a new joint
venture, Yermak Neftegaz LLC,
to conduct exploration in the West Siberian and Yenisey-Khatanga
basins in the Russian Federation.
Final binding agreements
for the new joint venture were signed at the XX St.
Petersburg International Economic Forum (SPIEF) in June
The joint venture
will focus on the onshore exploration of two Areas of
Mutual Interest (AMIs) in the West
Siberian and Yenisey-Khatanga
basins covering a combined area of approximately
260,000 square kilometers. Yermak Neftegaz is owned 51
per cent by Rosneft and 49 per cent by BP. Beginning in
this coming winter season (2016-17), the joint venture
will carry out further appraisal work by starting the
drilling of the Bkl-21 well on the 2009 Rosneft-discovered
Baikalovskiy field inside the Yenisey-Khatanga AMI and
will commence seismic surveys of the
in the West Siberian AMI. The joint venture will also
conduct geological exploration of the Kheiginskoye and
Anomalnoye licenses in the West Siberian AMI.
Before the completion
of the deal the JV partners took a decision to
participate in an auction for two E&P license blocks in
Krasnoyarsk region - Verknekubinskiy and Posoyskiy,
located within the Yenisey-Khatanga AMI. On October 28,
2016 Yermak Neftegaz LLC won the auctions for both
exploration and production licenses. Thus the joint
venture holds 7 licenses for the use of subsurface
activities in the two AMIs will include regional
studies, acquisition of seismic data and drilling of
exploration wells. BP has committed to provide up to
$300 million in two phases as its contribution to the
cost of the JV’s activities at the exploration stage.
Rosneft will contribute licenses and operational
experience in West Siberia and Yenisey-Khatanga with
initial drilling to be performed by Rosneft
BP announced today that it has
signed agreements with Kosmos Energy to acquire a
62% working interest, including operatorship,
of Kosmos’ exploration blocks in Mauritania and a
32.49% effective working interest in Kosmos’
Senegal exploration blocks -- acreage which holds world-class
deepwater gas discoveries and exploration prospectivity across both
approximately 33,000 square kilometres of acreage covered by today’s
agreements includes the Tortue field, estimated by Kosmos to contain
more than 15 tcf of discovered gas resources. The total acreage, by
Kosmos’ estimates, could contain roughly 50tcf of gas resource
potential and in excess of 1 billion barrels of liquids resource
BP will invest nearly one billion
dollars mostly in the form of a multi-year exploration and
development carry to acquire a 62% interest and operatorship of
offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and an
effective 32.49% interest in the Saint-Louis Profond and Cayar
Profond blocks in Senegal.
BP chief executive officer Bob
Dudley commented: “BP’s entry into Mauritania and Senegal represents
an exciting strategic opportunity to work with Kosmos Energy in an
emerging world-class hydrocarbon basin. We believe our expertise in
integrating the gas value chain, together with a talented
exploration partner in Kosmos, along with the support of the
Mauritanian and Senegalese governments brings together all the
elements needed to create a new LNG hub in Africa.”
In order to reduce development
time and drive capital efficiency, the partners plan to process and
transport the gas from Tortue at a nearshore LNG facility. The
proposed complex could be expanded in phases to accommodate future
Under the terms of the
agreements, BP and Kosmos have also agreed that Kosmos will remain
the technical operator for the exploration phase of the project and
drill three new exploration wells beginning in 2017.
In addition to the existing
blocks, the companies have agreed to cooperate in areas of mutual
interest in offshore Mauritania, Senegal and The Gambia with Kosmos
acting as the exploration operator and BP as the development
Subject to government approvals,
the agreements are expected to close by the first quarter of 2017.
Notes to editors
- Under the terms of
the agreements, BP will pay Kosmos a cash bonus of $162 million
on completion. Moving forward, BP will carry Kosmos’ exploration
and appraisal costs of $221 million along with Kosmos’
development costs of $533 million, including front-end
engineering and design studies. Project sanction is expected by
- Kosmos will also receive a contingent bonus of up to $2
per barrel for up to 1 billion barrels of liquids, as a
production royalty, subject to a future liquids discovery and
- BP’s proposed share of the Contractor Group results in a
in Mauritania consisting of Société Mauritanienne Des
Hydrocarbures et de Patrimoine Minier 10%,
BP 62% and Kosmos 28% and
an effective working interest in Senegal consisting of Société
des Pétroles du Sénégal 10%, BP 32.49%,
Kosmos 32.51% and Timis Corporation 25%.
29 December 2016
BP and PTT sign LNG sale and purchase agreement
BP and PTT Public Limited Company (PTT) entered into a sales and purchase
agreement for liquefied natural gas (LNG).
Under the agreement, BP will provide PTT with approximately
1 million tonnes of LNG per annum. The term of the
agreement is 20 years. LNG supply will commence in 2017 and will be
sourced from BP’s diverse portfolio of LNG, including the
Freeport LNG Project in the USA.
Paul Reed, Chief Executive of BP Integrated Supply and Trading, said: “BP is
pleased to conclude this LNG sale and purchase agreement with PTT, with whom we
have a longstanding relationship. Thailand has become a significant LNG market
and this agreement with PTT further demonstrates our LNG supply capability in