By Ian Walker
LONDON--Oil major BP PLC (BP.LN) said Tuesday it is selling part of its interest in the Magnus oil field and some associated pipeline infrastructure in the U.K. northern North Sea, as well as the Sullom Voe Terminal on Shetland to EnQuest PLC (ENQ.LN) for $85 million.
BP is selling 25% of its 100% stake in Magnus, 25% of its interests in a number of associated pipelines, and a 3% interest in the Sullom Voe Terminal from BP Exploration Operating Company Ltd.'s current 12% stake.
The sale price is expected to be met by EnQuest from the sharing of future cash flow from the assets. No up-front payment is being made.
As part of the agreement, EnQuest has an option, exercisable between July 1, 2018 and Jan. 15, 2019, to buy BP's remaining 75% interest in Magnus, a further 9% interest in Sullom Voe Terminal and the remainder of BP's interests in the associated pipelines for $300 million.
-Write to Ian Walker at email@example.com; @IanWalk40289749
(END) Dow Jones Newswires
January 24, 2017 02:44 ET (07:44 GMT)
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