Thursday, June 3, 2010

BP (NYSE:BP) May Divest of Valuable Assets to Pay for Oil Spill Cleanup

BP (NYSE:BP) may possibly have to divest of some valuable assets in order to pay for the ongoing cleanup of the oil spill in the Gulf of Mexico.

"BP is going to have to look to other assets to pay for this mess they’re creating," said CEO at Petroleum & Resources Corp. Douglas Ober. "They won't be able to use any of that cash flow to expand production or add to reserves, and that’s really going to put them in a bind."

This would make more sense for BP than someone taking over the company, as it unknown costs related to the spill in all areas could be astronomical, and not too many companies would be willing to take that on, even if that had substantial resources to do it.

So far the company has lost about 30 percent of its value since the accident.

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