Sunday, July 18, 2010

BP canvassing investors on possible break up: report

BP canvassing investors on possible break up: report

LONDON (Reuters) – Under-fire oil company BP Plc (BP.L) has started canvassing shareholders about a restructuring in the wake of its Gulf of Mexico oil spill which could include a break up of the business, the Sunday Times newspaper reported.

The newspaper, citing unnamed BP insiders, said options included selling the group's refineries and petrol stations, scaling back its U.S. operations and ramping-up in-house engineering instead of outsourcing.

These are on top of the sale of about 10 percent of its assets, including its stake in the giant Prudhoe Bay field in Alaska, the Sunday Times added.

A BP spokesman said it did not comment on rumor and speculation.

BP, which has already divested much of its downstream operations in recent years, said last month it planned to sell around $10 billion of assets to help pay for costs from the worst offshore oil spill in U.S. history, but declined to say which assets were up for grabs.

On Saturday, the oil group extended for another 24 hours a critical test of its blown-out Gulf of Mexico well that has so far shut off the huge oil leak, a top U.S. official overseeing the spill response said. ... _breakup_1

1 comment:

  1. Nearly two months ago it dawned on me that BP would either file bankruptcy or seek investors. Initial thought, a mid-eastern mega oil provider. In an recent article, which I neglected to bookmark the link, but will find, stated that BP had been at the EU meeting, along with OPEC and Russian interests, to discuss a moratorium on drilling to implement greater policies since the Horizon disaster. Both OPEC and Russia did not feel this was needed at this time. A second meeting, to take place this month, will include once again, an attempt at talks for a moratorium. As to the foreign investor, BP stated they would not discuss their financial dealings. My guess, OPEC will review their risks with BP, and likely cover them, while the relationship between Russia and BP will cool over drilling in Alaska while Russia snuggles up with OPEC. It's time for BP to leave America.


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