BP Sells $7bil of Assets to Apache


BP is selling $7 billion worth of its assets to Texas-based oil and natural gas company Apache Corp. BP will use the money to pay for damages and cleanup in the Gulf. The BBC has more:

BP chairman Carl-Henric Svanberg said the deal with Apache was the first sale of assets to help pay for the spill. BP has already spent some $4bn on efforts to contain and clean-up the oil and compensate those people affected by it.

The comany said the assets sold included oil fields and gas processing plants in Texas and south-east New Mexico worth $3.1bn and BP’s upstream Western Canadian gas business for $3.25bn. The deal also included oil exploration and production assets in Egypt worth about $650m. BP’s share of the Prudhoe Bay oil field in Alaska was not included in the sale to Apache, contrary to earlier media speculation.

The company had also been thought to be looking at a sale of assets in Vietnam and Pakistan, and of its majority stake in its subsidiary Argentine Pan American, which operates in Argentina, Chile and Bolivia, and is thought to be worth about $9bn.

The Prudhoe Bay ownership structure was too complex to include it in the deal, writes the Wall St. Journal.

According to the LA Times,

BP pledged last month to set up a $20-billion fund to pay claims for disaster victims. It planned to finance the fund by suspending its dividend for the rest of the year, cutting back capital spending and selling up to $10 billion worth of assets. Other asset sales are expected.

Meanwhile, BP still hasn’t stopped the oil leak.