Tags: bp | plains-exploration | assets | deal

Source: BP May Sell $7 Billion of Assets to Plains Exploration

Sunday, 09 Sep 2012 08:23 PM

BP is in talks to sell some of its Gulf of Mexico offshore oil fields to Plains Exploration & Production Co. for roughly $7 billion, a person familiar with the matter said on Sunday.

A deal would be transformational for Houston-based independent oil explorer and producer, Plains, which had a market capitalization of $5.2 billion as of Friday.

The Wall Street Journal, which earlier reported news of the talks, said a deal could be announced as soon as this week.

But the source, who declined to elaborate on the timing of a deal, cautioned that the companies were in continuing discussions and talks could still fall apart.

Another person familiar with the matter said that BP has been shopping the Gulf of Mexico offshore oil fields to potential buyers.

The sources asked not to be named because the matter was not public.

Representatives for BP and Plains Exploration were not immediately available for comment on Sunday.

U.K.-based BP has been selling off assets to help pay for the 2010 Gulf of Mexico oil spill.

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