BP announces $85 million North Sea sale

BP announces $85 million North Sea sale

British oil major BP (LSE:BP) will sell part of its stake in the Sullom Voe Terminal (SVT) and the Magnus oil field to EnQuest (LSE:ENQ).

The oil field is located 160km north-east of the Shetland Isles in the North Sea, while the Sullom Voe oil and gas terminal is situated on the isles.

The deal worth a total of $85 million involves EnQuest buying BP’s 25% share in the Magnus field, along with 3% of BP’s current 12% stake in the SVT, where oil is brought ashore from the North Sea.

There is an additional clause in the deal which will allow EnQuest to purchase BP’s remaining 75% interest in Magnus, as well its remaining 9% stake in SVT.

BP’s North Sea regional president Mark Thomas said: “Sullom Voe and Magnus have been great businesses for BP, but to maximise the economic life of these important assets, we believe this deal will offer them a better long-term future.”

Last year, BP shelved plans for a $623 million gas processing plant at Sullom Voe.