BP has agreed to sell its interests in the Jayhawk gas processing plant in Hugoton, Kansas, and associated producing gas fields in Kansas to an affiliate of LINN Energy.
Under the agreement, LINN Energy has agreed to pay BP $1.2bn in cash.
Completion of the agreement is subject to closing conditions including the receipt of all necessary governmental and regulatory approvals, the companies said.
The sale is currently expected to complete on March 30.
The agreement includes the sale of all of BPs working interest in about 2,400 wells in the Hugoton natural gas field, as well as the Hugoton Jayhawk gas processing plant, which has a processing capacity of about 450 million standard cubic feet of gas per day (mmscf/d).
The majority of BPs current net natural gas production of about 110 million cubic feet of gas equivalent in the area is processed through the plant.
We are reshaping BPs business around the world, focusing on our strengths and future growth opportunities, said BP CEO Bob Dudley.
The sale of these mature assets will allow us to concentrate our efforts on our strong core positions in the US and globally, he added.
In 2011, BP produced over 1,800 mmscf/d natural gas in the US.
BPs North America gas business has a high quality portfolio of assets with a presence in 6 of the top 13 gas basins in the US Lower 48, the company said.
BP's operations center in Ulysses, Kansas, is staffed by 120 employees. Most are expected to receive offers with LINN.
BP's presence in the Kansas wind business will be unaffected by the sale, the company noted.