BP PLC agreed to sell its 34.3% interest in Yacheng natural gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $308 million.

Subject to approval from regulators, CNOOC Ltd. and necessary third-party approvals, closing is expected during the second half of 2013, BP said. After closing, CNOOC will hold 51% of Yacheng and KUFPEC will hold the rest. Yacheng field is in 90 m of water some 100 km south of Hainan Island.

Commercial production at Yacheng started in 1996. BP operated the field until Jan. 1, 2004, when CNOOC became the operator.

Chen Liming, BP China president, said BP remains committed to working with China where BP holds interests in two deepwater blocks in the South China Sea. Those blocks are under exploration.

The Yacheng sale takes BP's ongoing total divestments announced since 2010 to $37.8 billion