BP to divest Pakistan operations

KARACHI: British Petroleum (BP) Plc plans to divest its exploration and production operations in Pakistan, as part of a plan to sell global assets to help pay for the worst oil spill in US history, an industry source said on Tuesday.

BP does “want to pull out of Pakistan’s exploration and production operations, and this is not just specific to Pakistan,” said the source who has knowledge about the developments but declined to be identified.

“This process should be completed by December 2010,” said Sabeen Jatoi, the BP spokesperson. “Pricing will be a matter for bidders. ... We will not be selling at a price that does not represent a good deal for BP shareholders.”

“However, there are no bidders right now and BP is setting up its data room in Pakistan after which bidders will come forward,” Jatoi added.

BP unveiled plans last month for about $10 billion in asset sales following the oil spill which has caused an economic and environmental disaster in five US states along the Gulf Coast.

BP said in a statement that it had spent $3.95 billion on efforts to cap the well and clean up the spill.

Published in The Express Tribune, July 21st, 2010.