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
Under the agreement, LINN Energy has agreed to pay BP $1.2bn
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.