BP to sell stake in China gas field to Kuwait

BP today announced it has agreed to sell a stake in the Yacheng gas field in the South China Sea (pictured) for $308 million (£189m) in cash. Kuwait Foreign Petroleum […]

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By Priyanka Shrestha

BP today announced it has agreed to sell a stake in the Yacheng gas field in the South China Sea (pictured) for $308 million (£189m) in cash.

Kuwait Foreign Petroleum Exploration Company (KUFPEC) will get 34.3% interest in the field, which is believed to be the largest offshore natural gas producing field in China.

It currently supplies natural gas to a company in Hong Kong via a 780km pipeline and additional gas is sold to customers on Hainan Island.

Chen Liming, President of BP China said: “This sale is part of BP’s ongoing global portfolio optimisation. BP remains committed to working with China to contribute its deep expertise and oil and gas supply options in this important emerging market.

The deal is expected to close next year. Earlier this week, the oil giant also announced its agreement to sell a stake in the Sean gas field in the North Sea to energy firm SSE.