BP to sell Colombian oil assets to Ecopetrol, Talisman for $1.9 billion

British oil giant BP said yesterday that it has signed a deal to sell its Colombian assets to Ecopetrol SA and Talisman Energy Inc for $1.9 billion as part of its plan to raise money to cover costs arising from the Gulf of Mexico oil spill.

Ecopetrol, Colombia's national oil company will take a 51-per cent and Talisman of Canada 49 per cent of BP's oil and gas exploration, production and transportation business in Colombia.

Under the terms of the agreement, Ecopetrol and Talisman will pay BP a cash deposit of $1.25 billion with the balance on completion of the sale.

BP said the sale does not include its Castrol lubricants business and other downstream oil activities in Colombia.

The sale assets of BP include interests in five producing fields, four separate pipeline and two offshore exploration blocks. Net proven reserves total some 60 million barrels of oil equivalent and net production of approximately 25,000 boe a day.

"I am really pleased with this deal," said Ecopetrol's CEO Javier Gutierrez. "It fits into our strategic plan perfectly, bringing new reserves, production and potential areas for our exploratory portfolio," he said.