UEG will pay BP a total of $775m in cash for these assets, which consist of nine producing and exploration blocks in Sindh province and four offshore exploration blocks in the Arabian Sea.
The assets are held by BP Pakistan Exploration and Production, BP Pakistan (Badin) and BP Exploration Alpha. The transaction is expected to be completed in the first half of 2011.
The sale of these interests in Pakistan 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 these assets in Pakistan, BP already had sales agreements in place totaling approximately $21bn.
The company said that the proceeds of this latest sale will be used by BP to increase the cash available to the group.
Under the terms of the agreement, UEG is required to pay BP a cash deposit of $100m with the balance of the proceeds due on completion of the sale.
