Back to top

Analyst Blog

Zacks Equity Research

BP, SSE in $288M N Sea Sale Deal


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

British oil giant BP Plc (BP - Analyst Report) has announced a $288 million sale agreement with SSE Plc relating to its share in non-operated North Sea assets.

The all-cash deal with respect to the Sean gas field in the UK North Sea, where BP holds a 50% stake is estimated to be completed in the first half of 2013.

BP’s decision to divest its stake in non-operated North Sea assets forms part of a broader program which proposes to focus on high value assets having long-term growth potential.

Located in the southern North Sea – Sean gas field is operated by Royal Dutch Shell Plc (RDS.A - Analyst Report). BP’s share of net production from the field is equivalent to around 18,000 barrels of oil per day.

The annual North Sea production for BP averages around 200,000 barrels of oil equivalent per day, while the estimated proven and contingent resource available to the company in the region is more than three billion barrels.

BP announced a string of divestitures during 2012. The two deals that were completed in the last fortnight includes the sale of its non-operating stakes in the Alba and Britannia fields to Mitsui and the Draugen field in Norway to Shell.

Over the next five years, BP plans to spend around $10 billion in the North Sea, covering key projects in the UK and in Norway. With three major projects ongoing in the UK — Clair Ridge, Quad 204 (Schiehallion) and Kinnoull — and two in Norway — Skarv and the Valhall Redevelopmen — the region holds immense growth potential for the coming years.

Some of the operating assets of BP in the region are Clair, Schiehallion, Foinaven and Magnus in the Shetland area; Harding and Bruce in the UK’s central North Sea; and Valhall, Ula, and Hod in Norway.

BP holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. Longer term, we maintain our Neutral recommendation.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%