BP (NYSE:BP) Sells Trafigura its African Assets

Trafigura, which isn't a stranger to scandal itself, has reportedly acquired the African assets of BP (NYSE:BP).

BP will receive $296 million in cash for the assets, which are located in Tanzania, Namibia, Botswana, Zambia, and Malawi.

What's different about this divestiture by BP is it isn't the result of the need the need to raise capital as other assets have been sold for, but part of its overall strategy to sell off low-producing non-core assets.

Even though the two companies have agreed to the terms of the deal, it could be challenging to Trafigura, as each individual country must give its approval for the sale, and Trafigura hasn't had the best record in the region.

According to Trafigura subsidiary Puma Energy, so far talks have been going pretty well with the African countries.

As for BP's ongoing selling of assets to raise capital to pay off liabilities related to the Gulf oil spill, the remain at about $14 billion, close to half of the $25 billion to $30 billion they want to raise to ensure they have the capital to take care of their responsibilities.

Trafigura is a commodities conglomerate.