BP Sells Assets To Cover Gulf Oil Spill CostsAugust 20, 2012
According to a recent report by Bloomburg Business, BP PLC is selling some of its oil fields in the Gulf of Mexico to help supplement the cost of the 2010 Gulf Coast oil spill. Reportedly, BP is asking upwards of 7.9 billion dollars for some of the oil fields it is attempting to sell. According to industry sources, BP could clear up to $5 billion to $6 billion after the buyer pays taxes. Sources say that BP has refused to comment on the sale but it still plans to remain one of the largest oil and gas producers in the Gulf.
In fact, BP says that the public should not confuse BP business transactions with BP’s commitment to the Gulf of Mexico. Reportedly, BP still plans to invest at least $4 billion per year over the next decade in the Gulf. Sources say the company has six rigs in the Gulf now and plans to have eight by the end of the year. Further, BP insiders report that London-based BP hopes to sell $38 billion worth of assets by the end of 2013 to help pay the costs of cleaning up the Gulf oil spill. Sources say BP has also announced it is selling a California refinery along with pipelines and gasoline stations for an expected $2.5 billion. Reportedly, this deal brought BP's asset sales to $26.5 billion since the April 2010 Gulf oil spill.
According to Bloomburg, in July, BP reported a second-quarter loss of $1.4 billion on lower oil prices, falling production and write-downs of assets including shale-gas holdings in the U.S. The loss was larger than analysts expected and a reversal from profit of $5.7 billion a year earlier.