LONDON (AP) — Oil company BP said Monday it is selling some deep-water assets in the Gulf Mexico to Plains Exploration & Production Co. for $5.55 billion, a big step in the BP's drive to cover the cost of its oil well blowout in the Gulf two years ago and concentrate investment elsewhere.
BP is selling its interests in three of the assets it operates: the Marlin hub, Horn Mountain and Holstein. The deal also includes BP's stakes in two non-operated assets, Ram Powell and Diana Hoover.
Plains is also buying the 50 percent interest in the Holstein field that BP doesn't own from Shell Offshore Inc. for $560 million. Both deals, representing production of 59,500 barrels of oil equivalent per day, are expected to close by the end of the year.
"While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP's global exploration and production portfolio and we intend to continue investing at least $4 billion there annually over the next decade," said BP chief executive Bob Dudley.
The company's shares were up 1.1 percent at 439 pence in London trading following the announcement.