BP sells stake at South American oil prospector

Britain's BP said Sunday it has agreed to sell its 60% stake in South American oil prospector Pan American Energy to Argentina's Bridas Group for US$ 7.06 billion, giving Bridas outright control of the venture. The deal raises more money to cover the estimated US$ 40 billion cost of the Gulf of Mexico oil spill.

On the flipside, it is another step in the expanding influence of Chinese companies in the energy sphere, as Bridas is a 50-50 a joint venture between China's state-owned oil developer CNOOC and Argentina's Bulgheroni family. CNOOC said the deal will lift its average daily output by 68,000 barrels of oil equivalent per day.

BP has now raised about US$ 21 billion in the sale of assets since the Gulf of Mexico accident in April. "We now have agreements in place that should secure the majority of our divestment target. We will continue to identify further assets that may be strategically more valuable to others than to BP as we complete the program", BP chief executive Bob Dudley said in a statement.