Apache Corp (NYSE:APA) continues its pursuit of BP (NYSE:BP) assets, as BP seeks additional capital to handle the mounting cleanup costs and increasing liabilities in connection to the Gulf oil spill.
The assets have been rumored to be mostly in Alaska, but that has yet to be confirmed, although very probable.
Two things need to happen to make the deal happen. One is related to Apache's ability to raise the funding needed to make the acquisition, which bankers say they are in the process of attempting at this time. They are supposedly trying to obtain a bridge loan valued from $6 to $7 billion for the deal, which is approximately valued at $10 billion.
The second, and more complex part of the equation, is to clear the way for rights of first refusal, which must be done from their partners in order to proceed.
Although challenging, the latter isn't expected to stop the deal from going forward, and an announcement sometime next week is expected to be made.