BP to swap Asian interests for Columbia properties

Petroleum News Alaska Staff

BP said Jan. 30 that it has agreed to an exchange of interests with Amerada Hess under which it will swap its 25 percent interest in block A-18 of the Malaysia Thailand joint development area for Amerada Hess's interests in Colombia.

The Colombian interests include a 12 percent stake in the Santiago de las Atalayas, Tauramena and Rio Chitamena contracts, in which the Cusiana and Cupiagua fields are located; 10 percent in the Recetor Association contract; and a 9.6 percent stake in the Ocensa pipeline.

Amerada Hess will also make a balancing payment to BP of $10 million.

BP said the exchange allows both companies to consolidate their portfolios in their respective areas and focus on activities where they already have material upstream businesses. It adds some 58 million barrels of proven reserves to BP's Colombian portfolio.

The deal is subject to certain regulatory approvals and notifications. Completion is expected in the first half of 2003.