BP sells Pan American Energy interests to Bridas

Based in Argentina, PAE is an oil and gas company that is 60 per cent owned by BP, with Bridas holding the remaining 40 per cent.

Bridas will pay $7.06bn (£4.53bn) in cash for BP’s interest in PAE, in a deal that is expected to be completed in 2011.

The sale of its interests in PAE is part of BP’s plan, announced in July 2010, to divest up to $30bn of assets by the end of 2011.

Before the agreement to sell its interests in PAE, BP already had sales agreements in place totalling some $14bn.

The proceeds of the sale will be used by BP to increase funds to cover liabilities following the oil spill in the Gulf of Mexico earlier in the year.

‘We now have agreements in place that should secure the majority of our divestment target,’ said Bob Dudley, BP group chief executive. ‘We will continue to identify further assets that may be strategically more valuable to others than to BP as we complete the programme.’