By James Hanshaw
Britain's oil major BP is reportedly gearing up to sell some of its US assets in order to pay for other US assets which it acquired from BHP Billiton in October.
Image courtesy of Pixabay
BP has lined up a number of onshore assets for sale and expects to fetch more than $3 billion. The proceeds from this sale will help BP in funding the $10.5 billion purchase of oil-producing fields located mainly in Texas and Louisiana from BHP Billiton. The British company previously said it would sell $5-$6 billion of assets to finance the deal.
BP wants to increase its focus on its holdings in the Permian and Eagle Ford basins - two of the most prolific shale oil producing regions in the US - to match rivals such as Exxon Mobil and Chevron whose production there is set to rise sharply in coming years.
Private equity firms Carlyle and Warburg Pincus have reportedly shown interest in buying BP's assets.
Further reading: Reuters