BP's (NYSE:BP) Venezuela Assets Priced at $800 Million

According to Venezuela's Oil Minister Rafael Ramirez, the value of assets held by BP (NYSE:BP) in the country which they've been approved to sell to TNK-BP, is $800 million.

TNK-BP is a joint venture between BP and a group of Russian billionaires.

Ramirez said in a press conference, "We authorized the purchase by TNK-BP of BP's stakes ... it is an $800 million transaction that they have agreed. We are going to make all the documents to allow it to happen."

Assets to be sold include Petroperija and Bouqeron fields, which produce light-oil, and Petromonagas, which processes heavy crude into lighter synthetic oil, which is then sent to refineries to be processed again. These projects are majority owned by PDVSA.

BP is selling the assets as part of their effort to raise $30 billion to pay for Gulf liabilities.

BP (NYSE:BP) Hands Off Babysitting Chavez to Russians

While the divestiture of BP (NYSE:BP) assets in Venezuela are part of the strategy of the oil giant to raise $30 billion to pay for mounting liabilities from the Gulf of Mexico oil spill from the explosion aboard the Deepwater Horizon oil rig, a secondary benefit comes with it: No longer having to deal with the volatile and unpredictable Hugo Chavez.

Even though BP is a 50-50 partner in TNK-BP, their joint venture with a group of Russian billionaires, they'll retain benefits of the assets, but not have to deal with, for the most part, the operational headaches that come with doing business in Venezuela.

That doesn't include the $1.8 billion BP raised from the deal to serve its liability goals.

Another nice benefit in this is if the business in Venezuela is taken over or fails for some reason, BP already enjoys the $1.8 billion that came with the deal, putting them ahead of the game.

Overall it's a smart deal for them.

BP's (NYSE:BP) Assets in Venezuela Will be Acquired by TNK-BP

A deal to acquire the Venezuelan assets of BP (NYSE:BP) by TNK-BP, a joint venture between them and a group of Russian billionaires, has been confirmed today by the energy ministers of both countries.

The memorandum was signed between the two nations when Hugo Chavez visited Russia.

Terms of the deal weren't revealed (although in the past it was estimated to be valued at about $1 billion) but the specific assets were, as German Khan, one of the wealthy Russian's with a stake in the venture revealed, include the acquisition of three oil fields: "16.7 percent of Petromanagas, 40 percent of Petroperija and 26.6 percent of Bouqeron," said Khan.

TNK-BP's goal is to expand outside of Russia and ultimately become the largest independent producer based in the country.

BP is selling the asset as part of their goal to raise $30 billion to pay for unfolding liabilities related to the Gulf of Mexico oil spill.

BP's (NYSE:BP) Algerian Assets Draw Interest of TNK-BP

With a number of non-core assets of BP (NYSE:BP) on the market to raise capital to pay for liabilities for the oil spill, it has garnered a lot of attention from companies around the world, including their own joint venture TNK-BP.

TNK-BP is a joint venture between a group of Russian billionaires and BP, which has shown interest in several of BP's assets, especially in Vietnam and Venezuela. Now they've expanded that interest to Algeria, where BP is the largest foreign investor in the country.

At this time TNK-BP is waiting for BP to be cleared by Algeria to transfer its assets to TNK-BP. At that time they said they'll take a closer look at the Algerian assets.

BP operates Salah Gas and Amenas, two gas fields, and has a stake in Rhourde El Baguel oil field. They also have significant exploration acreage in the country.

TNK-BP has a goal of having at least 50 percent of their production outside of Russia, according to interim CEO Mikhail Fridman.