As demand for crude oil keeps increasing, exploration and production companies are constantly restructuring their asset portfolios in order to gain access to more superior and longer-lasting reserves. Big Oil companies, especially, struggle to ensure steady growth in production volumes from their far-flung resources across the globe.
The latest deal
Which is why the latest sell-off looks logical. Management is streamlining its focus here by divesting assets that aren't part of its core holdings. It could also be that the Cleeton, West Sole, and Amethyst fields (part of the SGA) have started showing signs of natural decline. Perenco, on the other hand, mentions in its press release that it "has a successful track record in prolonging the life of the mature assets it operates."
BP seems pretty serious about its long-term prospects, with major restructuring plans under way. Between 2010 and 2013, the company is planning to divest $38 billion worth of assets. In line with this, divestitures worth $20 billion have already taken place. Of course, part of the funds were used to finance costs involved with the Gulf of Mexico oil spill. However, the company's focus seems to be the long term, and BP isn't the only one.
So far in 2012, ExxonMobil
Foolish bottom line
BP doesn't seem to be far behind in terms of streamlining its reserves portfolio. Management's focus on the long term looks interesting. Production growth in the next couple of years could be likely. In order to help you stay updated with the company's latest developments, add BP to your free watchlist.
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Fool contributor Isac Simon does not own shares of any of the companies mentioned in this article. Motley Fool newsletter services have recommended buying shares of ExxonMobil and Chevron. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.