BP Sells Canadian Gas Unit for US$1.67 Billion
British energy group BP said on Thursday that it had agreed to sell its Canadian natural gas liquids business to Plains Midstream Canada ULC for U.S.$1.67 billion in cash.
The deal, equivalent to 1.24 billion Euros, comes as BP seeks to unlock US$30 billion to meet compensation costs linked to last year's Gulf of Mexico oil spill caused by a blast on the BP-leased Deepwater Horizon platform.
Despite the latest sale, BP chief executive Bob Dudley said "Canada remains an important part" of BP's "portfolio of growth opportunities to meet North America's energy needs."
BP said the sold business employs 450 people who will transfer to Plains Midstream upon completion of the deal. Plains Midstream Canada ULC is a wholly-owned subsidiary of Plains All American Pipeline.
The Gulf of Mexico explosion on April 20, 2010, killed 11 workers and sent some 4.9 million barrels of oil gushing into the Gulf over a three-month period, wreaking havoc on the region's environment and economy.