BP Sells Texan Assets for $228 Million

LONDON -- BP (ISE: BP.L) (NYS: BP) remained unchanged at 448 pence during early London trading after the oil major agreed to sell two gas processing plants in Texas for $228 million.

BP said the Sunray and Hemphill plants had a combined processing capacity of approximately 220 million cubic feet of gas a day, as well as an associated "gathering system" of around 2,500 miles of pipelines.

BP also stated the plants would be more "strategically valuable" to a company that specializes in midstream oil and gas operations. The purchaser is Eagle Rock Energy Partners.

The sale is expected to close in the fourth quarter of this year and is the latest deal following BP's decision to streamline its operations after the Gulf of Mexico oil spill.

Results earlier this month showed BP raising $1.9 billion from disposals during the second quarter, and $3.2 billion during the first half. Since the start of 2010, BP has announced disposals of $24 billion and is aiming to raise $38 billion by the end of 2013. BP's balance sheet currently carries assets held for resale of $9 billion.

The disposals follow a period of heavy investment for BP. In particular, the oil group invested $52 billion in the United States between 2007 and 2011 -- a sum that BP says exceeded the U.S. expenditure of any other oil and gas company.

Furthermore, all the disposals should help BP's cash flow and its ability to pay dividends, which currently run at $0.08 per share per quarter, or about 20 pence per share per annum, and supports a 4.5% income.

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