BP agrees to sell interest in Yacheng gas field to KUFPEC

BP has agreed the sale of its 34.3 per cent interest in the Yacheng gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $308m (£190m) in cash.

BP expects the deal to close in the second half of 2013, subject to regulatory, China National Offshore Oil Corporation (CNOOC) and third-party approvals.

Commercial production at Yacheng started in 1996. BP operated the field until 1 January 2004, when it handed operatorship to its major project partner CNOOC.

The field currently supplies natural gas for power generation to Castle Peak Company in Hong Kong via a 780km pipeline. Additional natural gas, condensate and liquid petroleum gas (LPG) are sold to customers on Hainan Island.