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Sunday, 18 March 2018

BP looking to sell off maturing Egypt assets and focus on gas

BP looking to sell off maturing Egypt assets and focus on gas, exploring exit from GUPCO: BP has reportedly begun meeting with prospective buyers for its stake in its 50-year-old JV with the EGPC, the Gulf of Suez Oil Company (GUPCO), banking sources told Reuters. The sale of the maturing assets comes as BP looks to focus on ramping up gas production in the eastern Mediterranean from fields such as the West Nile Delta development and its stake in Zohr. While the banking sources valued GUPCO at USD 500 mn, BP is hoping to raise USD 1 bn from the sale, sources familiar with the matter tell Bloomberg. BP has a target to sell USD 2-3 bn of assets this year, down from USD 4.3 bn in 2017, as it continues to shore up its finances following crude’s collapse. Divesting the Egyptian onshore fields could be sensitive as they employ thousands of local staff, sources added.

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