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BP TO SELL INTEREST IN BP CANADA

 BP TO SELL INTEREST IN BP CANADA
 CLEVELAND, May 11 /PRNewswire/ -- British Petroleum is to sell its


stake in its Canadian subsidiary, BP Canada. The transaction will be lead-managed by RBC Dominion Securities, which is arranging the sale of the shares to investors at a price of Canadian $13 to be paid in three installments over the next 24 months. In total, the sale will raise C$374 million (U.S.$314 million) for BP.
 BP Canada has been re-organized over the last three years into a focused oil and gas business, with significant interests in the deep gas fields of the Western Canada Basin. The company's total market capitalization at the current market price is C$688 million. British Petroleum's wholly-owned subsidiary, BP Canadian Holdings, owns 28.7 million shares, or 56.94 percent of the issued shares. The remaining shares are held by individual and institutional investors. BP Canada shares are listed on the Toronto, Montreal and Vancouver stock exchanges.
 BP Canada's gross proven reserves, before royalty, at the end of 1991 amounted to 40 million barrels of oil and condensate and 743 billion cubic feet of gas. The company produced 16,000 barrels of conventional oil and natural gas liquids and 170 million cubic feet of natural gas a day in 1991.
 John Browne, Chief Executive of BP Exploration, described the sale as a further step in the process of rationalizing and focusing BP's worldwide exploration and production activities.
 He said, "We face a wealth of opportunities in our key producing areas - the North Sea and Alaska. We also have two major discoveries, in Colombia and the deepwater of the Gulf of Mexico, to be developed in the next few years. Accordingly, we have to make choices, on a worldwide basis, about the allocation of the resources we have available.
 "As part of the process of focusing our activity we have decided, aside from Alaska and the Gulf of Mexico, to withdraw from the onshore oil and gas business in North America. The sale of BP Canada, following the disposal of TEX/CON last year and the sale of our interest in the Canadian Hunter joint venture earlier this year, completes the implementation of that decision. In each case those are good businesses but not activities which fit BP's strategy.
 "We believe that BP Canada's considerable potential, including particularly the gas discoveries in the Monkman area, can be better developed by those for whom the assets are central and strategic. The re-structuring of BP Canada over the last three years has been extremely successful, and the company is now in excellent shape to compete as an independent entity."
 Mr. Browne confirmed that Mr. David Claydon, Chief Executive Officer of BP Canada, and Dr. Jim Buckee, Chief Operating Officer, will remain as employees of BP Canada.
 -0- 5/11/92
 /CONTACT: Ian W. Fowler, 216-586-4976 or 216-333-8528 after hours (media), or Terry Lamore, 216-586-4101, both of BP America/ CO: British Petroleum ST: Ohio IN: OIL SU: TNM


DA -- CL015 -- 8880 05/11/92 23:41 EDT
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Publication:PR Newswire
Date:May 11, 1992
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