BP Sells Canada Gas Assets to Plains Pipelines

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Source: Bloomberg News

BP Plc agreed to sell its natural-gas liquids business in Canada to Plains All American Pipeline LP (PAA) for $1.67 billion in cash.

The business includes 4,000 kilometers (2,500 miles) of pipelines, 21 million barrels of storage capacity and fractionation plants in Sarnia, Fort Saskatchewan and Empress. BP began seeking a buyer for the Canadian assets in March. Completion is expected in the first half of 2012, BP said today in a statement.

The sale brings BP closer to its goal of raising almost $40 billion through asset sales to help compensate for last year’s Gulf of Mexico spill, the worst in U.S. history. Chief Executive Officer Robert Dudley has overseen divestitures in Venezuela, Vietnam and the U.S. since taking over from Tony Hayward more than a year ago.

“The divestment program is positive for BP because it generates cash quickly,” said Jason Kenney, an oil and gas analyst at Banco Santander SA in Edinburgh. “This also lets BP focus on their higher-value upstream assets.”

Read more: http://www.bloomberg.com/news/2011-12-01/bp-sells-canada-gas-assets-to-plains-pipelines-for-1-7-billion-in-cash.html