BP agrees £190m sell-off of pipelines as £10bn asset sale looms

OIL giant BP is to sell some of its pipeline and oil storage assets to Magellan Midstream Partners for $289 million (£190.7m).

The embattled firm, currently trying to plug its oil leak in the Gulf of Mexico, will offload storage facilities for 7.8 million barrels of crude oil and more than 100 miles of active petroleum pipelines from its pipeline division in North America to US-headquartered Magellan.

The news comes days after reports that rival Exxon had sought clearance from Washington to examine a bid for BP, in a takeover that would create a mega oil company with a stock-market value of more than $400 billion (265bn).

Abu Dhabi's crown prince, Sheikh Mohammed bin Zayedal-Nahayan, also said he was considering the acquisition of a stake in the oil company. "We are still thinking about it," he was quoted as saying.

BP recently announced plans to shed some of its non-core assets to help pay for the spill, which has cost the company more than $3bn on cleanup and damages so far. It has already agreed to set aside another $20bn for future damage claims.

But Sheila Williams, a spokeswoman for the company, said the sale was not part of a previously announced plan to sell $10bn in assets over the next 12 months, claiming that BP and Magellan had been negotiating since well before the rig explosion responsible for the oil spill.

"This is a deal that's been in the pipeline for quite some time," she said.

The acquisition also includes pipelines for crude oil and refined fuels that can be connected to every major refinery between Houston and Texas City, Texas.

Magellan said the deal should close within 60 days and is subject to approval by regulators.

Meanwhile, oil prices climbed back above $75 a barrel yesterday, tracking rising stock markets as strong corporate earnings reports boosted confidence in the US economy.