LONDON: British oil giant BP said on Tuesday it will sell its Colombian business for a total of $1.9 billion (1.4 billion euros) to national oil company Ecopetrol and Talisman of Canada.
The divestment is part of BP's plans to sell off up to $30 billion of assets, as it faces soaring costs from the Gulf of Mexico oil spill disaster.
The news comes just one week after BP's vilified chief executive Tony Hayward resigned in the wake of a record second-quarter loss of $16.9 billion dollars - the biggest quarterly loss in British corporate history.
"BP today announced that it has agreed to sell its oil and gas exploration, production and transportation business in Colombia to a consortium of Ecopetrol, Colombia's national oil company (51 percent), and Talisman of Canada (49 percent)," it said in a statement.
"The two companies will pay BP a total of $1.9 billion in cash ... for 100 per cent of the shares in BP Exploration Company (Colombia) Limited, the wholly-owned BP subsidiary company that holds BP's oil and gas exploration, production and transportation interests in Colombia."
The transaction, which is subject to regulatory and other approvals, is expected to complete by the end of 2010.
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