Tuesday, July 20, 2010

BP (NYSE:BP) Offering Pakistan and Vietnam Assets for Sale

It hasn't been a secret that BP (NYSE:BP) is looking to sell some of its assets to raise capital to pay for the increasing costs related to the Gulf oil spill, and that includes assets in Vietnam and Pakistan, which had been assumed to be part of the company's strategy.

BP confirmed that today by saying they've notified both countries to let them know they're putting the assets up for sale, although they did say there hadn't been any offers yet for them.

The asset sales, according to BP spokesman David Nicholas, would be used to build up the $20 billion escrow fund, which they've committed $5 billion a year to over the next four years.

Together the assets in Vietnam and Pakistan are estimated to be worth about $1.7 billion.

BP has been negotiating with Apache (NYSE:APA) for assets located in Alaska, which they value at about $10 billion, but which Apache reportedly only wants to pay about $9 billion for. Talks are ongoing, but there hasn't been news of a breakthrough yet related to price, or another sticking point connected to language in the proposed contract.

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