BP in Talks to Unload $12B in Assets, Including Prudhoe Bay
July 11, 2010
(ChattahBox)—BP Plc. is reportedly in negotiations with Houston-based Apache to sell a number of the firm’s assets to raise cash for cleanup costs and to pay claims related to the Gulf oil disaster. The deal is expected to infuse BP with $12 billion in cash. What’s on the table? BP’s stake in Alaska’s oil-rich Prudhoe Bay.
The deal with Apache was first reported by the London Times. BP officials are not commenting on any ongoing negotiations. If the deal does indeed go through, Apache would own the largest oil field in North America.
“The oil major said in June it wanted to raise $10 billion pounds from sell-offs to boost a $20 billion fund for cleaning up what is, 83 days in, the worse oil spill in U.S. history. The Sunday Times said Houston-based Apache approached BP with the plan a few weeks ago and negotiations were under way on the structure of an agreement.”
BP agreed to fund a $20 billion compensation fund for the victims of the Gulf disaster and the Apache deal would certainly provide BP with needed liquidity to fill the coffers of the escrow account.