Wednesday, July 21, 2010

Apache (NYSE:APA) Acquiring $7 Billion of BP (NYSE:BP) Assets

Coming on the heels of BP (NYSE:BP) aggressively shopping its assets in Pakistan and Vietnam, the deal with Apache has finally been confirmed, although for less money and assets than originally being looked for.

What was somewhat surprising, is no BP assets in Alaska were sold, which may point to them being the sticking point in prior negotiations where price was reportedly a factor in a larger deal valued at $10 billion by BP, and of which Apache had offered closer to $9 billion.

In the deal, Apache will take over assets in Egypt of an East Badr El-din exploration concession, while other assets in Texas, New Mexico, and gas projects in Western Canada and British Columbia are also included.

Combined assets account for approximately 385 million barrels of oil equivalent.

The deal is expected to be closed on July 30, and Apache will advance BP $5 billion before the close.

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