BP Confirmed its Deal with Apache

On Tuesday, BP gave a nod to sell its natural gas business in Western Canada to Houston-based Apache Corp. The assets of the deal have been valued at $7 billion. The decision has been made by the Company to compensate the mounting costs of the cleaning up process at Gulf of Mexico. The deal was announced last month, and then, the assets were valued at $10 billion.

As per the terms of the deal, an amount of nearly $3.3 billion will be paid by the Apache for the reserves of 214 million barrels oil, in Western Canada. The Egyptian assets, which have a net daily production of 6,016 barrels of oil and 11 million cubic feet of gas, will be sold at $650 million to Apache.

A Prudhoe Bay oil and gas field on Alaska’s North Slope, in which BP has 26% stake, is also expected to be part of the deal.

It is a good opportunity for Apache, as striking a deal with such a big Company, will increase its profits.

BP’s Canada Spokeswoman, Hejdi Feick told that the deal would affect 520 jobs, which is equal to half of the unit’s workforce.

By July 30, Apache will pay an amount of $5 billion of the total sum and the leftover amount will be paid later on, as told by the Company.