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BP ahead of schedule on $10B divestment, looks to take $3B in Q3 charge

BP PLC said it is ahead of schedule by a year for its planned $10 billion divestment program.

The company has already signed an agreement for the sale of its Alaskan business to Hilcorp Energy Co. for $5.6 billion and agreed to sell four packages of its legacy assets from its U.S. Lower 48 business, according to an Oct. 11 news release from the U.K. firm.

BP said the deal with Hilcorp is expected to close in 2020, while it will continue to review asset valuations in the Lower 48 during the fourth quarter.

The firm also expects a non-cash, non-operating, after-tax charge of $2 billion to $3 billion in its upcoming third-quarter results.

BP sees net debt levels decreasing and moving in the middle of the target range of 20% to 30% through 2020.

Based on its work program until 2021, the company also started production in 23 of its 35 projects, with four projects ramping up in 2019.

BP also said its third-quarter production will drop by about 100,000 barrels of oil equivalent per day due to Hurricane Barry shutting output for around 14 days.