BP sells Gulf assets in $5.6bn deal with Plains

BP is to sell assets in the US Gulf of Mexico for $5.6bn (£3.5bn) to Plains Exploration & Production.

The deal will bring BP closer to its target of $38bn worth of disposals by the end of next year.

As part of BP's plan to raise cash to pay the costs of the 2010 Deepwater Horizon disaster, it has so far entered into agreements to sell assets with a value of more than $32bn.

BP's chief executive, Bob Dudley, reassured investors that the sale did not signal the oil giant's departure from the region.

He said: "While these assets no longer fit our business strategy, the Gulf of Mexico remains a key part of BP's global exploration and production portfolio and we intend to continue investing at least $4bn there annually over the next decade."