Tuesday, September 7, 2010

BP's (NYSE:BP) Alaskan Assets Drawing Interest Again

After failing to come to a deal with Apache (NYSE:APA) in July to sell its Alaskan assets, there is a renewed interest in the 26 percent stake BP (NYSE:BP) has in the gigantic Prudhoe Bay oilfield, including operational rights.

Also named as a company having interest in the asset is Occidental Petroleum Corp. (NYSE:OXY).

Over the weekend BP let it be known they're raising their asset sale target from $30 billion to $40 billion, as liabilities continue to mount from the oil spill in the Gulf of Mexico.

It isn't clear at this time if BP will continue to hold part of the stake in Prudhoe Bay field, or will sell the entirety of it.

BP has already sold gas assets from the U.S., Canada and Egypt to Apache for $7 billion. They stopped the original attempt to sell Prudhoe to Apache because it had become too complicated.

Estimates for loss of production as a result of the $30 billion in assets sold is at about 8 percent, making it harder for the company to generate consistent revenue and earnings to meet their growing liabilities.

Depending on which assets are sold in the future, the new $40 billion target in asset sales may cause a loss of production of up to roughly 11 percent.

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