BP sells Venezuela and Vietnam assets for $1.8 billion

The UK-based oil group BP has put a US$1.8 billion pricetag on its oil and gas assets in Venezuela and Vietnam as it seeks to raise funds after the Gulf of Mexico oil spill.

BP has agreed to sell its oil and gas production businesses in Venezuela and Vietnam to its Russian affiliate, TNK-BP, for US$1.8 billion (Dh6.6bn) as it continues to raise funds after the Macondo oil spill in the Gulf of Mexico.

The UK-based oil group said the deal covered its interests in three oil and gas joint ventures in Venezuela as well as its 35 per cent operating stakes in two gasfields and associated pipeline and power generation infrastructure in Vietnam.

BP said the sales were part of its plan, announced in July, to sell up to $30bn of assets by the end of next year to help the company meet financial obligations arising from the oil spill.

"Today's agreement is further evidence of the rapid progress BP is making towards the divestment target we set out in July," said Bob Dudley, the group chief executive of BP. "These are robust businesses which offer both existing production and potential opportunities for future growth. We believe they will offer TNK-BP a solid foundation as it builds its business outside Russia."

BP owns 50 per cent of TNK-BP, its joint venture with a group of Russian billionaires.