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The Markets
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The Markets
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Energy

BP may sell stake in North Sea field to Shell

BP is looking to sell off $10bn of assets over the next two years

BP PLC (LON:BP.) could sell its stake in a key North Sea oil and gas field to its long-time rival Royal Dutch Shell PLC (LON:RDSB), according media reports.

Shell, which own a 28% stake in the Shearwater field joint venture, is in talks about buying its FTSE 100 peer’s 27.5% share, Reuters reported on Wednesday.

BP is looking to sell off $10bn of non-core assets over this and next year, following its purchase of BHP’s petroleum business for $10.5bn last summer.

In December, Shell revealed that the joint venture partners, which include 44.5%-owner Exxon Mobil, were going to invest in the development of a gas infrastructure hub near Shearwater, which lies about 140 miles east of Aberdeen.

The Shearwater hub is predicted to pump out roughly 400mln cubic feet of gas a day at its peak, or roughly 70,000 barrels of oil equivalent per day.

Shell and BP are both due to report first-quarter production updates next week, with both expected to be firing on all cylinders.

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