Kuwait sells $2b BP stake, hitting shares

London/Kuwait: Kuwait has agreed to sell a 0.89 per cent stake in the world's second largest-listed oil firm, BP, worth around $2 billion, hitting the London-based firm's shares.

The Kuwait Investment Office (KIO), a government agency responsible for managing some of the OPEC nation's oil wealth, said the sale was part of a portfolio rebalancing exercise.

Investment banks Goldman Sachs and Citigroup are expected to sell the stake of 185 million shares at between 645 pence and 652 pence a share, dealers said. BP's shares fell 1.2 per cent to 645 pence.

The stock has risen almost 30 per cent in the past year as earnings soared on the back of record oil prices.

The KIO, part of the Kuwait Investment Authority (KIA), said it will continue to hold about 2.56 per cent of BP's issued share capital.

No official figures are available for the exact size of the KIA's portfolio of international securities but analysts estimate it is worth around $80 billion.

KIO was advised over the sale of the shares by Credit Suisse First Boston.