BP is understood to be negotiating with China National Offshore Oil Corporation (CNOOC) to sell a 60% stake in Pan America.
The beleaguered oil giant is seeking to sell $10bn of non-core exploration and production assets. If the deal with China National goes ahead BP could achieve this objective in one single transaction, the Telegraph reports
State-owned CNOOC currently holds 20% of Pan America with the rest of the firm owned by Argentinean businessman Carlos Bulgheroni, who may take part of BP's stake in the deal.
BP shares on the LSE fell back in early trading, down 1.25% to 3259p, after rising 3% yesterday.
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