BP (NYSE:BP) Reportedly Sells African Assets to Trafigura

A newspaper in Namibia reported that BP (NYSE:BP) has sold assets in the country, and also in Botswana and Zambia, to oil trader Trafigura. The paper cited a minister from the government as the source.

Claims that Namibia Mines and Energy Minister Isak Katali confirmed the sale was asserted by the paper.

BP spokeswoman Glenda Zvenyika, based in Johannesburg, said, "BP is in the process of selecting a buyer for its assets in five African countries and that's all there is at the moment. Before we make an announcement on the deal, these reports are just speculation."

Zvenyika did reiterate the company is in negotiations to sell the assets in the three countries, and also in Tanzania and Malawi, but at this time there have been no decisions made concerning deals.

BP has a goal of selling off about $30 billion in assets to raise capital to pay for liabilities related to the Gulf oil spill.

BP (NYSE:BP) Denies S.Africa, Mozambique Assets for Sale

Media reports BP (NYSE:BP) was going to sale its assets in S.Africa and Mozambique were debunked by the oil giant, where they said they had no intention of taking those actions, but are rather looking at investing more in them.

BP noted their intention is to spend close to $90 million on fuel terminals, safety, and to restore its damaged reputation.

BP's Chief Operating Officer for the eastern hemisphere, Tufan Erginbilgic, confirmed it saying, "South Africa is an important market for us. There's no intention to sell any more assets; in fact, next year we will spend about $90 million."

Most of the capital expenditure will be focused on the South African market.

In other African markets like Tanzania, Zambia, Botswana, Namibia and Malawi BP does has assets for sale.

BP (NYSE:BP) Keeping Deepwater Assets

BP (NYSE:BP) and partner TNK-BP, a joint venture between BP and Russian billionaires, announced today they have a confirmed deal is now in place over some assets held in Venezuela by BP.

The oil giant has been selling a number of assets, and others are on the block, in order to raise around $30 billion to pay for growing liabilities from the Gulf oil spill.

A number of onshore and natural gas assets have already been sold.

With the oil future in deep water though, BP is holding onto those assets, and aren't considering selling them. That includes natural gas deepwater drilling off of Azerbaijan.

Contrary to what appears to be a move away from deepwater drilling, it is in fact expanding fast, as huge resources are believed to be in waters which have had little, if any, exploration done on them.

With the huge known natural gas reserves discovered, many energy companies are doubling their efforts in the much more profitable oil sector.

BP (NYSE:BP) Approved by Venezuela to Sell Oil Assets

In an attempt to raise up to $30 billion to pay for liabilities related to the Gulf of Mexico oil spill, BP (NYSE:BP) is trying to sell assets in Venezuela, and they've been given approval by the government to go ahead with the process.

The assets held in Venezuela include an interest in heavy oil and minority stakes in two exploration and production ventures with state-owned oil company PDVSA.

Combined it is estimated BP should be able to raise up to $1 billion from the assets. Although a relatively minor deal in comparison with others, it is one of the bigger challenges for the company to divest of.

The only two companies considered a buyers for the stakes are PDVSA itself, and possibly the joint venture of BP with Russia called TNK-BP. The Russian connection would make it more palatable to Venezuela.

BP holds a 50 percent stake in TNK-BP, which also has interests in Vietnam and Algerian assets held by BP.

Market Ignores BP (NYSE:BP) After Permanently Killing Oil Well

The news that BP (NYSE:BP) killed their oil well was largely ignored by investors and traders, as their minds were on gold and other more important matters.

Thad Allen, the government point man for the BP oil crisis, announced on Sunday they have officially killed the oil well with the "bottom kill," the final step in the process.

Investors shrugged off the news today, although BP got a bump up early in the trading session, and is up to $38.40, gaining $0.37, or 0.97 percent, as of 12:01 PM EDT.

This was somewhat of an anti-climax concerning the well, as it hasn't leaked oil since July 15, and most considered it a foregone conclusion that the oil giant would be able to successfully complete the task.

BP now can fully focus on the legal aspects of the situation, which is picking speed, and also selling assets to raise capital to pay for legal losses and government fines.

Only a little over 3 million shares had traded hands at about noon today, down from the usual 30 million 3-month average.

Citigroup (NYSE:C) Says Cnooc Could Pay BP (NYSE:BP) $10.2 Billion for Asset in Argentina

Citigroup (NYSE:C) said today Cnooc Ltd. could make a bid of $10.2 billion for its 60 percent for BP's (NYSE:BP) stake in Argentina’s Pan American Energy LLC. Cnooc is the largest Chinese offshore exploration company.

The bid would be a 10 percent premium over what it paid earlier in 2010 for Pan American, but that is because they would assume control of the company if they are successful in their BP bid.

If this goes through, it would be close to double the approximate $10 billion in assets already sold, and two-thirds of the way toward the $30 billion BP is attempting to raise to meet liability obligations in relationship to the Gulf of Mexico oil spill.

Cnooc is reportedly looking for a partner in the bid, which could come from Apache Corp. (NYSE:APA), Occidental Petroleum Corp. (NYSE:OXY) or Total SA (NYSE:TOT), all of which have operations in Argentina already.

BP (NYSE:BP) Dividends to Resume?

The question on many BP (NYSE:BP) shareholders and investors minds when the company will reinstate the dividend.

Incoming CEO Robert Dudley stated near the end of July that the company wasn't going to be quick to jump back into the same "dividend philosophy" they held in the past.

He seems to really be saying that until they get a better picture of overall liabilities, there aren't going to reinstate the dividend. That picture is getting clearer, as Citigroup Inc. (NYSE:C) analyst Mark C. Fletcher said in a meeting he attended where Robert Dudley spoke to analysts, he reportedly said overall claims toward the $20 billion fund are probably going to be less than that amount, and he doesn't see overall claims exceeding $32 billion, or at least they'll be close to that number if they do go beyond it.

A growing number of analysts believe BP will either reinstate dividends in the fourth quarter, or at latest, the first quarter of 2011.

Sanford C. Bernstein & Co. analysts said in a note to clients, “BP’s cashflow position should be just strong enough to support restoration of dividends by the first quarter of 2011, under an $80 a barrel oil price scenario based on estimates. This assumes divestments are completed and the spill costs do not climb much above BP’s $32.2 billion estimate.”

Bernstein added this is based on the assumption BP will be able to successfully sell up to $30 billion in assets over the next 18 months, as they've said their goal is.

Citigroup (NYSE:C): Exxon (NYSE:XOM) Ready to Bid on BP (NYSE:BP)?

Citigroup (NYSE:C) recently talked about the need for BP (NYSE:BP) to conclude its permanent sealing of the Macondo well before companies may be interested in making a bid on them, and now that they're close to doing that, one of the obvious names associated with the possibility is ExxonMobil (NYSE:XOM).

One other possibility related to a possible acquisition that has been thrown around, as far as oil companies go, is Chevron (NYSE:CVX), but if they made a bid, and Exxon was interested, they would have no chance if a bidding war ensued, as Exxon has almost exactly twice the market cap of Chevron, and could easily win a battle.

Another possibility is a Chinese company. Cash wouldn't be a problem there, but being government-owned, for the most part, it's highly unlikely the go ahead would be given if a bid was made.

There hasn't been specific indication from a competitive or antitrust standpoint whether or not there would be resistance to an Exxon bid, but if they did get BP, the size of the company would be extraordinary.

Once Exxon would take the BP assets and grow them, they could have a market cap of about $500 billion. As it is, they be well over $400 billion. And that's at a time they've been beaten down in share price because of the ongoing recession.

It would boggle the mind as to the powerhouse they would become, although it would come with a lot of baggage in BP, which they would have to deal with over a long period of time.

But with BP's shares down and their divesting of assets, there may not be a better season of time to get them at a bargain price.

Impact of BP (NYSE:BP) Assets Sales on the Company

A number of clueless media outlets, mostly mainstream, have castigated BP (NYSE:BP) once again when they recently stated they would struggle to pay their liabilities if they were cut off from new drilling permits and projects in the Gulf of Mexico. The implication was they were blackmailing the country.

This is a completed ignorant assertion and can't even be taken seriously by anyone who understands business.

We have to go back to the promise by the Obama administration that a healthy BP is in the best interests of the country, as they not only provide thousands of jobs, but really would struggle to survive and pay out claims, lawsuits and other liabilities if there aren't new sources of business for them.

For example, they said when their target was at $30 billion to deal with Gulf damages, it would cut their production by 8 percent. That's 8 percent less revenue they would get after the sales were completed.

Now they said over the weekend they're raising their assets sales target to $40 billion, which will raise the loss of production numbers up to about $11 billion, depending on the particular assets sold.

Most people don't understand that every time they sell an asset they lose revenue and profits. All of that goes to unproductive, but necessary, pay outs for damages. The problem is there's a point of no return if they get too weak, and at that time even if they continue to have the will to pay, they won't be able to do it if costs raise to extremely high levels with much less earnings to pay for them.

BP (NYSE:BP) Selling Malaysia Assets to Petronas

In its ongoing effort to raise $30 billion over the next 17 months to pay for liabilities, claims and cleanup related to the Gulf of Mexico oil spill, BP has agreed to sell assets in Malaysia to Petronas for $363 million.

Petronas, or Petroliam Nasional Bhd., is the national oil company of Malaysia.

The assets being sold are Polyethylene Malaysia Sdn Bhd, which BP holds a 60 percent stake, and Ethylene Malaysia Sdn Bhd, where BP holds a 15 percent stake.

In a statement, Sue Rataj, president of BP’s Global Petrochemicals Business, said, “BP will continue to focus on the development and expansion of our olefins and derivatives business in China, and other large rapidly growing markets, and pursue opportunities in China and India.”

The is expected to close near the end of 2010.

BHP's CEO Won't Comment on BP (NYSE:BP) Interest

Now that BHP (NYSE:BHP) is a primary focus of the economic media, every possibility seems to be a target of inquisition, including the possibility of acquiring some assets of BP (NYSE:BP) they're shopping to raise capital to pay for mounting liabilities.

When BHP CEO Marius Kloppers was asked if they were involved with any negotiations with BP for some assets, he refused to comment, saying his primary focus now is on securing the deal for Potash (NYSE:POT).

Kloppers did say on a conference call that "beyond the acquisition of potash, our aspirations to grow the deployment of capital in the natural resources space would be undiminished," seeming to imply a lot of things are on the table.

BHP could acquire BP assets without hurting the company or increasing costs from being downgraded, as they generate a cashflow of $38.6 billion annually, with only $3.3 billion in net debt.

The company has said their goal is to maintain their A credit rating and ongoing dividend policy while they expand the business.

BP (NYSE:BP) Confirms They're Selling Denver Gas Plant

BP (NYSE:BP) confirmed Tuesday they're going ahead with plans to sell the Wattenberg Gas Plant, located in Aurora, Colorado, near Denver.

This is part of the ongoing strategy of selling assets to raise $30 billion to pay for the Gulf of Mexico cleanup and ongoing claims.

The major purpose of the plant is to process natural gas from the Denver Julesburg Basin.

Being a quality plant, BP expects to only have to market it over the next month or so before finding a buyer, and then should close the deal sometime in November or December, depending on how long it takes to transition to the new owner.

At capacity it operates 195 million cubic feet of gas a day while employing close to 24 employees.

BP spokesman Daren Beaudo wouldn't comment on what the company is asking for the asset.

Apache (NYSE:APA) Selling Bonds to Help Acquire BP (NYSE:BP) Assets

Part of the $7 billion Apache Corp. (NYSE:APA) needs to acquire oil and gas assets from BP (NYSE:BP) will be raised by selling $500 million or above worth of 30-year bonds today.

Apache was required to pay $5 billion as a deposit to BP by July 30, and the other $2 billion in the latter part of 2010. The deal is still subject to being cleared by regulators.

The company will use the sale of the bonds to help pay for a bridge facility they used to close the deal on assets held by BP in America, including the Permian Basin and properties in New Mexico.

Other BP assets acquired by Apache are located in Canada and Egypt.

Apache will us cash on hand, commercial paper, common stock, revolving credit facilities and depository shares to finance the other assets they're buying from BP.

The company has made three separate major acquisitions this year totaling about $12 billion.

BP (NYSE:BP) Completes Acquisition of Devon Energy (NYSE:DVN) Oil Field

Although BP (NYSE:BP) and Devon Energy (NYSE:DVN) have both been divesting of assets for different purposes, in the case of both companies they're still looking to acquire strategic assets to coincide with their business strategy going forward.

In this case BP and Devon have completed their latest deal where BP acquired an oil field in Azerbaijan waters in the Caspian Sea for $2 billion.

Devon is moving toward focusing on assets in onshore assets in North America, while also using the capital raised for paying down debt and buying back shares of the company.

The ACG field acquired by BP produces approximately 17,000 barrels of oil a day.

Devon is also selling assets in Brazil, which they expect to close on by the end of 2010. BP has been buying up promising oil fields in Brazil on the other hand, acquiring rights to 10 blocks representing about 1.4 million acres.

Apache (NYSE:APA) Finishes Acquisition of BP (NYSE:BP) Permian Basin

Apache Corporation (NYSE:APA) announced today it has finished the acquisition of the assets held by BP (NYSE:BP) in the Permian Basin for $3.1 billion.

The Permian Basin assets they acquired are in West Texas and New Mexico.

Included in the deal are the land, infrastructure and oil and gas operations.

The land part of the deal includes 1.7 million gross acres, 405,000 of which are classified as net mineral and fee acres, which have the possibility of producing more product.

Proven reserves in the 10 Permian fields Apache acquired are 141 million barrels of oil equivalent. Of that 65 percent are liquids. Gas per day from the fields is MMcf. There are also two gas processing plants which are operational.

Apache paid for the assets with cash, debt and equity offerings.

BP will continue to operate the properties for Apache through November 30.

BP (NYSE:BP) Vietnam Assets Generate Interest, No Bids Yet

There has been a lot of interest in the assets BP (NYSE:BP) has been putting up for sale, including those in Vietnam, which include a power plant, gas field and pipeline.

When PTT Exploration and Production PCL (PTTEP.TH) was asked about their interests in the BP assets, chief executive officer Anon Sirisaengtaksin said he didn't think it was appropriate to comment on the circumstances.

Another competitor in the country, PetroVietnam, has already expressed an interest in the properties, but have yet to make an official bid.

The particular assets for sale are 35 percent owned by BP. Oil & Natural Gas Corp. from India has a 45 percent stake in it, and PetroVietnam the remaining 20 percent.

An increasing number of BP assets are being put on the block in order to raise money to pay for the Gulf oil spill cleanup and claims resulting from the damage associated with it.

BP (NYSE:BP) Could Sell Argentine Assets to China's CNOOC

Looking to sell about $30 billion in assets to raise capital to pay for its liabilities in the Gulf oil spill, BP has considered selling assets in a number of countries, including Pakistan, Vietnam, Canada, Egypt, and in South America, Colombia.

With a 60 percent stake in PAE, one of BP's strongest assets in South America, the company could possibly raise $12 billion alone, with PAE being recently valued at close to $20 billion.

Holding the other 40 percent stake in PAE is Bridas of Argentina.

Where CNOOC comes into the picture is they recently acquired a 50 percent stake in Bridas, revealing an interest in PAE. If BP decides to sell their stake in the company, they could, along with the other $9 billion in assets they've already committed to selling, bring the total to over two-thirds of what their asset-selling goal is.

Some analysts think it's unlikely that CNOOC would acquire BP's stake in PAE, because of taxes in Argentina.

Reserves at PAE are rising, and it is an attractive asset, although it could be put up for sale by BP, as it isn't considered as important as some of its other assets, and could bring a good price.

BP (NYSE:BP) Venezuela Assets Not Officially For Sale Yet

About a week ago BP (NYSE:BP) let Petroleos de Venezuela SA (PDVSA) Vice President Eulogio del Pino know it was interested in selling its stakes in the Boqueron and Petroperija oil fields and the heavy oil-upgrading project of Petromonagas.

This is part of the initiative by BP to raise up to $30 billion to help pay the costs related to the Macondo oil spill in the Gulf of Mexico.

Evidently Rafael Ramirez, president of PDVSA, the Venezuelan state-owned oil company, but also the oil and energy minister of Venezuela, wants the assets badly, and noted BP hasn't officially requested permission to sell the Venezuelan assets.

Authorization is needed, and it seems that authorization must come from Ramirez.

BP wants to sell the assets to its Russian joint-venture partner, TNK-BP.

Strategically that's not a bad move, as Venezuela would be more apt to sell to a Russian partner than possibly any other partner.

The three projects account for the production of about 130,000 barrels a day.

Kuwait Ready to Increase Holdings in BP (NYSE:BP) Under Right Conditions

Although Kuwait has said it's content with its stake in BP (NYSE:BP), they're ready to increase their holdings in the company if the right market conditions present themselves. That could be a reference to the company's share price falling.

The sovereign wealth fund of the company, the Kuwait Investment Authority, said they haven't been approached by BP to increase their stake, a nod toward the goal of $30 billion the oil giant has to handle the increasing liabilities and claims they're faced with.

A report in a regional paper generated the comments from Kuwait, where it was said outgoing CEO Tony Hayward made a request to the fund to increase its stake from the current 1.75 percent in order to increase their defense against a potential unwanted takeover.

BP sold its Colombian assets today for $1.9 billion.

BP (NYSE:BP) Sells Columbian Business, Raising $1.9 Billion

As part of the strategy of BP (NYSE:BP) to sell up to $30 billion in assets to raise capital to deal with the mounting claims and liabilities from the Gulf oil spill, they've sold off their Colombian business assets to a Colombian national oil company and a Canadian company.

Included in BP's assets are a transportation business, and oil and gas production.
The Canadian company buying into the assets is Talisman, which will hold 49 percent of the business, and the Ecopetrol, a national Colombian oil company, which will hold a 51 percent stake in the business.
"The two companies will pay BP a total of 1.9 billion dollars in cash ... for 100 per cent of the shares in BP Exploration Company (Colombia) Limited, the wholly-owned BP subsidiary company that holds BP's oil and gas exploration, production and transportation interests in Colombia," they said in a joint statement.
Including the recent deal with Apache (NYSE:APA), this brings the total of assets sold to just under $9 billion so far.

BP has been agressively marketing its upstream assets in Vietnam and Pakistan, with a number of companies and countries expressing an interest.