Tuesday, July 6, 2010

BP's (NYSE:BP) Pan-American could be at Top of Asset Sale List

In a bid to become more liquid, BP (NYSE:BP) has been looking at selling some of its assets in order to raise about $10 billion to help pay off victims of the oil spill.

There have been several assets being considered, especially oil fields in several countries which are past their oil production prime, or are smaller in reserves.

But the top asset that could be sold and which would raise close to what they want is Pan-American in Argentina.

One name being bantered about as to a potential suitor of Pan-American is Cnooc Ltd., the largest offshore oil producer.

“Pan American is the obvious place to start,” said Christopher Wheaton, at Allianz RCM’s Energy Fund in London. It’s got a valuation from Cnooc in mid-March and is one of the assets you could carve out of the portfolio easily.”

Pan-American produces close to 100,000 barrels of oil a day, and 450 cubic meters of gas, according to BP.

The sale of Pan-American would fetch over $9 billion for BP.

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