As part of its $30-billion assets disposal plan, British oil giant BP yesterday signed a deal to sell its stake in an Argentina-based oil and gas company to Bridas Corporation for $7.06 billion in cash.

London-based BP is selling to sell its 60 per cent stake in Pan American Energy (PAE) to Bridas, where the Argentina-based oil and gas company already holds 40 per cent.

BP said that the sale is part of its plan announced in July 2010, to divest up to $30 billion of assets by the end of 2011 in order to fund its Gulf of Mexico oil spill.

Prior to this disposal, BP has sold assets worth around $14 billion.

Under the deal, Bridas, Argentina's second-biggest oil producer will pay BP a cash deposit of $3.53 billion with the balance of the proceeds due on completion of the sale.

Bridas will pay $1.41 billion of this deposit on 3 December 2010, and the remaining $2.12 billion on 28 December 2010.

BP said that the transaction excludes its stake in PAE E&P Bolivia Ltd.

PAE is involved in the exploration, development and production of oil and gas and has interests in the Southern Cone region of South America. The company's main interests are in Argentina, where it is the second largest producer of oil and gas.

It holds blocks in four hydrocarbon basins in Argentina including Golfo San Jorge - including the large Cerro Dragon block -Austral, Neuquen and Northwest. The company also has interests in various portions of the oil and gas value chain, including oil and gas transportation, oil storage and loading, gas distribution and power generation.

As of 31 December 2009, proved reserves attributable to BP's 60 per cent interest in PAE were 917 million barrels of oil equivalent. Net production associated with BP's 60 per cent interest in PAE is approximately 143 thousand barrels of oil equivalent per day.

BP group chief executive Bob Dudley said, ''Today's agreement further demonstrates both the high quality and attractiveness of the assets throughout BP's global portfolio and also the company's ability to meet our significant financial commitments arising from the Gulf of Mexico tragedy.''

Buenos Aires-based Bridas, founded by the Bulgheroni family of Argentina in May 2010 formed a 50-50 oil-production joint venture with China National Offshore Oil Corp (CNOOC), where the Beijing-based oil major paid Bridas $3.1 billion.

CNOOC today announced that it and Bridas Energy Holdings will fund 70 per cent or $4.94 billion of the PAE purchase, while the remaining 30 per cent or $2.1`12 billion will be funded by Bridas through loans.