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BP Focusing on Sale of Algerian Gas Facility

BP is looking for buyers for its stake in a major Algerian gas plant deep in the Sahara desert after recent discussions on a sale to Russian oil titan Rosneft failed, three industry sources said.BP Focusing on Sale of Algerian Gas Facility

BP hopes to get about $2 billion from the sale of its 45.89% stake in the In Amenas natural gas facility that was the goal of a deadly offensive by Islamist militants in 2013.

The sale is a part of a $15 billion sale program BP is targeting by the middle of 2021, two of the sources said.

The permission for a sale of the Algerian assets will be one of the first main decisions for CEO Bernard Looney who took helm Wednesday after his predecessor Bob Dudley departed after a decade in the chair.

The sale is politically delicate for BP and its associates, Norway’s Equinor and Algerian state-owned Sonatrach, in the wake of the January 2013 offensives when shooters raided the site, and 40 staff died after a four-day assault.

A BP spokesperson refused to comment. Equinor and Sonatrach declined to comment.

BP has, in recent months, contacted several major worldwide oil and gas corporations to test the appetite for the share after discussions with Rosneft failed in 2019, the sources stated.

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