BP May Not Sell Algeria Assets

BP BP, Europe's second-largest oil company, is rethinking its plans to sell its assets in Algeria, according to the North African country's Energy Minister Youcef Yousfi. Yousfi made the remarks in an interview with Dow Jones on Sunday.

The move by BP to not proceed with the sale of its Algerian could further strain its relationship with TNK-BP, its joint Russian venture with several billionaire investors. BP's relationship with TNK-BP has come under pressure following news of BP's $16 billion share exchange with OAO Rosneft, Russia's largest oil company.

TNK-BP, Russia's third-largest oil producer, has complained BP's deal with Rosneft violates the venture's shareholder rights agreement. Last week, TNK-BP made an $8.1 billion offer to acquire the 5% of BP that Rosneft plans to purchase.

While BP never officially confirmed it was looking to sell its Algerian assets, TNK-BP did confirm its interest in the assets, which include stakes in two major natural gas projects and the the Rhourde El Baguel oil project. BP is also exploring for oil in the Bourarhet block next to In Amenas, Dow Jones reported.

Yousfi speculated that BP no longer needs to sell its Algerian assets because it has raised ample cash from other asset sales, Dow Jones reported. BP said last year it would look to sell over $30 billion in assets to help cover costs related to the Gulf of Mexico oil spill.

"One can imagine they are aware of the potential there in their oil and gas assets and decided to stay," Yousfi said, according to Dow Jones. Algeria is an OPEC member.