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.
