BP Sells Oil Assets in Gulf of Mexico
BP announced Monday that it will sell its stakes in the Gulf of Mexico oil fields to Houston-based Plains Exploration and Production Company for about $5.6 billion in addition to talks of selling its 50 percent stake in Russian affiliate, TNK-BP.
Before the 2010 Macondo well explosion in the Gulf of Mexico, BP was producing more than 400,000 barrels a day, which was among the company's most profitable oil due to lower taxes and exploration and development costs.
Today, BP is still raising money for cleanup costs of the massive oil spill in the region in 2010, according to CEO Robert W. Dudley. The company will be refocusing on high-risk, high-return frontier exploration and production, such as deepwater fields. However, BP is not pulling out of the Gulf of Mexico entirely.
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“While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP’s global exploration and production portfolio,” Mr. Dudley said in a statement.
The company expects output in the region to return to growth by 2014. Meanwhile, BP will be marketing its interests in a group of other gulf fields, including Horn Mountain, Holstein, Diana Hoover, Ram Powell and Marlin.
By the end of the year, the company hopes to sell $38 billion in assets, not including the TNK-BP stake. Since 2010, BP has sold assets worth $26.5 billion.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.