LONDON (AP) - BP plc. is selling its 60 percent stake in Argentina-based oil and gas producer Pan American Energy for $7.06 billion as part of its strategy to sell of tens of billions of assets to help pay for the massive oil spill in the Gulf of Mexico.The British oil giant said Sunday that Argentina's Bridas Corp., which already owns 40 percent of Pan American, will buy out BP's stake. The deal is expected to be completed in the first half of 2011. BP announced this summer that it would sell up to $30 billion in company assets as cleanup and response costs mounted and it faced billions of dollars in government fines and legal claims.

BP expects to spend nearly $40 billion to handle the Gulf oil spill, which was sparked by an April 20 rig explosion that killed 11 workers. Its runaway well was sealed in September after 172 million gallons of oil spewed into the Gulf. BP in July agreed to sell properties in the US, Canada and Egypt to Apache Corp. for $7 billion and the next month said it would sell its oil and gas exploration business in Colombia for $1.9 billion to Ecopetrol, Colombia's national oil company, and Talisman of Canada. In October BP agreed to sell energy assets in Venezuela and Vietnam to its Russian joint venture TNK-BP for $1.8 billion, and earlier this month sold stakes in several southern Africa fuel marketing businesses to Puma Energy for $296 million. The latest sale will bring BP's total amount raised so far to $21 billion.

Pan American Energy is the second largest oil and gas producer in Argentina. Bridas, which is jointly owned by Bridas Energy Holdings Ltd. and China's offshore oil and gas company CNOOC, gains 917 million barrels of oil equivalent in proven reserves and 143,000 barrels of oil equivalent per day in production in the deal. The acquisition excludes Pan American's assets in Bolivia.

“Today's agreement further demonstrates both the high quality and attractiveness of the assets throughout BP's global portfolio and also the company's ability to meet our significant financial commitments arising from the Gulf of Mexico tragedy,” said BP CEO Bob Dudley said in a statement.

“We will continue to identify further assets that may be strategically more valuable to others than to BP as we complete the program.”

BP said Bridas Corporation must make a cash deposit of $3.53 billion, beginning with a $1.41 billion deposit due on December 3. The rest of the deposit must be paid on December 28, the company said. The sale is subject to governmental and regulatory approvals.

CNOOC said it and Bridas Energy Holdings will each put up $2.47 billion toward the purchase price, with the remaining $2.12 billion to be funded by third-party loans or additional contributions from the two parent companies. CNOOC vice-chairman and CEO Yang Hua said the deal will enhance the Chinese company's presence in the region and boost its proven reserves and average daily production by 429 million barrels of oil equivalent (BOE) and 68,000 BOE, respectively.

China is clinching a slew of energy and resource-related deals meant to help ensure access to the commodities needed to keep its fast-growing economy booming. In March it paid $3.1 billion for the 50 percent joint venture stake in Bridas Corp. in a move to broaden its reach into Latin American and grow overseas.