BP share price up on FTSE 100 after $1.8bn sell off of Venezuelan and Vietnamese assets announced

Shares in BP were up slightly on the FTSE 100 in afternoon trading after the energy giant said it would be selling some of its Venezuelan and Vietnamese businesses to TNK-BP for $1.8 billion.

BP owns half of TNK-BP, while the other half is owned by AAR Consortium.

In Venezuela BP will be selling its interests in the Petroperijá, Boquerón and PetroMonagas joint ventures, while in Vietnam BP will sell its 35 per cent operating interest in the Lan Tay and Lan Do gas fields and associated pipeline and power generation interests.

The sale comes as part of BP's programme of selling off non-core assets worth up to $30 billion in order to help pay off the costs incurred by the oil spill in the Gulf of Mexico this year. BP has already announced the sale of $8.9 billion worth of assets in Egypt, Canada, Columbia and the USA.

TNK-BP will pay one billion dollars to BP ahead of the deal on 29 October, while the remaining $0.8 billion once the deal is completed.

Bob Dudley, Chief Executive of BP, said, "Today's agreement is further evidence of the rapid progress BP is making towards the divestment target we set out in July. These are robust businesses which offer both existing production and potential opportunities for future growth. We believe they will offer TNK-BP a solid foundation as it builds its business outside Russia."

Mikhail Fridman, CEO TNK-BP, added, "The acquisitions in Venezuela and Vietnam mark a milestone in TNK-BP's strategic expansion in the global energy market. Our company's ambitious yet highly focused and disciplined diversification provides TNK-BP with an excellent platform for further growth and profitability, while also helping develop new competencies that can be applied at home. Given Russia's strong relationships with Vietnam and Venezuela, we are sure that this transaction will create significant value both for TNK-BP and our local partners."

By 14:45 shares in BP were up 0.06 per cent on the FTSE 100 to 425.70 pence per share.