BP to Sell Off Upstream UK Assets and Lubricant Brands

BP plans to sell its interests in a number of operated oil and gas fields in the UK. The assets involved are the Wytch Farm onshore oilfield in Dorset and all of BP’s operated gas fields in the Southern North Sea, including associated pipeline infrastructure and the Dimlington terminal.

BP anticipates that the staff currently working on these assets will transfer employment to the new buyer when the divestments are completed. The divestments will allow BP to focus resources and investment on its diverse central North Sea, northern North Sea, West of Shetland and Norway assets and on successful delivery of its new major projects.

“The North Sea is a significant business for BP and we are currently investing here at the highest level for more than ten years, with four major new field development projects underway in the UK and two in Norway. The assets we intend to divest are of high value but find it difficult to compete for capital and resource within our North Sea portfolio. We believe they will attract earlier investment and be of greater value to a new buyer,” explains Trevor Garlick, regional president of BP North Sea.

BP aims to complete the divestments around the end of 2011, subject to receipt of suitable offers and regulatory and third party approvals.

BP has also announced that it is looking for buyers for its world famous Duckhams and Veedol lubricant brands. Both have been in existence since the invention of the motor car around the start of the 20th century. The successful buyer will get global rights to a wide portfolio of registered trade marks for the respective master brand as well as the associated product sub-brands and iconic logos. BP will focus on building its core Castrol and BP lubricant brands.

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