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BP sells stake in plan to divest US$30b of assets
By Gregory Katz |
November 29, 2010, Monday
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Print Edition
Print Edition
BP yesterday said it has agreed to sell its share of Pan American Energy, an Argentina-based oil and gas company, to Bridas Corp as part of its plan to divest US$30 billion of assets by the end of next year.
BP, trying to recover its financial strength after the calamitous Gulf of Mexico oil spill, said it will receive just over US$7 billion for its 60 percent interest in Pan American Energy, with the sale expected to be finalized next year.
"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," BP CEO Bob Dudley said.
BP spokesman David Nicholas said Bridas Corp, based in Argentina, is jointly owned by Bridas Energy Holdings Ltd of Argentina and China's offshore oil and gas company CNOOC.
BP said it already had agreements in place worth US$14 billion before the new sale was announced. The money from the sale of BP's stake in Pan American Energy will be used to increase BP's cash reserves, the company said.
"We now have agreements in place that should secure the majority of our divestment target," said Dudley, who became chief executive in October. "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 Corp must make a cash deposit of US$3.53 billion, beginning with a US$1.41 billion deposit due on Friday. The rest of the deposit must be paid on December 28, BP said.
The sale is subject to governmental and regulatory approvals being obtained.
BP, trying to recover its financial strength after the calamitous Gulf of Mexico oil spill, said it will receive just over US$7 billion for its 60 percent interest in Pan American Energy, with the sale expected to be finalized next year.
"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," BP CEO Bob Dudley said.
BP spokesman David Nicholas said Bridas Corp, based in Argentina, is jointly owned by Bridas Energy Holdings Ltd of Argentina and China's offshore oil and gas company CNOOC.
BP said it already had agreements in place worth US$14 billion before the new sale was announced. The money from the sale of BP's stake in Pan American Energy will be used to increase BP's cash reserves, the company said.
"We now have agreements in place that should secure the majority of our divestment target," said Dudley, who became chief executive in October. "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 Corp must make a cash deposit of US$3.53 billion, beginning with a US$1.41 billion deposit due on Friday. The rest of the deposit must be paid on December 28, BP said.
The sale is subject to governmental and regulatory approvals being obtained.
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