BP Plc is selling natural gas assets in Kansas for $1.2 billion.
The British oil giant said Tuesday that an affiliate of Linn Energy LLC bought its interest in about 2,400 wells in the Hugoton natural gas field, as well as the Hugoton Jayhawk gas processing plant. The plant can process 450 million cubic feet of natural gasper day.
The deal includes an operations center in Ulysses, Kan. that employs 120 people. BP expects most of those staffers will now work for Linn Energy. Linn Energy is an independent oil and natural gas company based in Houston.
BP parting with the natural gas assets in Kansas to better focus its most profitable ventures, said CEO Bob Dudley. “We are reshaping BP’s business around the world, focusing on our strengths and future growth opportunities,” he said.
The deal is expected to close on March 30.
In morning trading, BP shares gave up 5 cents to $47.49 while Linn Energy shares rose by 24 cents to $37.76.
