BP To Get Rid Of Norway's Project

International oil and gas giant BP said it is going to sell its interests in natural gas development Ormen Lange of Norway of $10 billion worth, because the company decided to exit projects where it has little influence.

The company said it seeks to reach an agreement on the sale by the end of this year, completing the transaction in 2005. In this project it owns 10.34 per cent, which will supply the UK and mainland Europe from 2007, and 10.2 per cent of the Langeled pipeline system.

BP's decision to leave Ormen Lange follows other disposals of minority holdings, including a sale of 9.5 per cent of the Kashagan field in Kazakhstan to Total SA in 2001 and some gas assets in the UK's sector of the North Sea to Perenco SA of France last year. The company has said it is seeking more influence in ventures where it can cut costs and improve profit margins.

A Norwegian analyst said that he was pretty sure that Norway?s firm Hydro would like to have this and they have the financial strength to buy it.