BP sells almost all Pakistan assets to UEG

Oil and gas company BP has entered into an agreement to sell almost all of its exploration and production assets in Pakistan to United Energy Group (UEG).

UEG will pay BP a total of $775m (£491m) in cash for these assets, which consist of nine producing and exploration blocks in Sindh province and four offshore exploration blocks in the Arabian Sea, held collectively by BP Pakistan Exploration and Production, BP Pakistan (Badin) and BP Exploration Alpha.

The transaction is expected to be completed in the first half of 2011.

Sale of these interests in Pakistan is part of BP’s plan, announced in July 2010, to divest up to $30bn of assets by the end of next year.