NEW YORK (
is hoping to sell assets in Pakistan and Vietnam, as part of its drive to raise cash to cover its liabilities from the Gulf of Mexico oil spill. BP is seeking to raise as much as $20 billion, the amount that it agreed to put in escrow with the U.S. government over the next several years to cover the ongoing oil spill liabilities.
The Vietnam and Pakistan projects are estimated to be worth a combined value of up to $1.7 billion, with natural gas holdings in Vietnam the larger of the two assets, valued at an estimated $1 billion.
Governments of both countries have been notified by BP of its intentions to seek buyers for its holdings in Vietnam and Pakistan, a BP spokesman told the
Apparently, BP has not received bids yet on any assets in Vietnam or Pakistan. Market rumors have been rampant that BP will sell everything from its stake in Prudhoe Bay, Alaska -- a deal is reportedly still at work with independent oil and gas company
-- to its Argentina-based energy company, Pan-American Energy.
Here's a rundown of how BP described the Vietnamese and Pakistan assets in a March 2010 investor presentation:
"In Vietnam, BP participates in the country's largest foreign investment, the Nam Con Son gas project. This is an integrated resource and infrastructure project, including offshore gas production facilities, a pipeline transportation system and a power plant. Production started in November 2002 and current gross production is circa 400 million standard cubic feet per day, which generates power for approximately 25% of Vietnam's electricity demand."
"In Pakistan, BP has drilled over 300 exploratory and development wells and today contributes 16% of Pakistan's oil and 7% of its gas. BP also holds exploration interests in Pakistan Offshore, covering an area of 34,000 sq km. On 30 December 2008, BP signed completion documents with Orient Petroleum International Inc. to acquire a 51% working interest, along with operatorship, in two joint venture blocks in the southern Sindh province of Pakistan."
-- Written by Eric Rosenbaum from New York.
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