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.
Showing posts with label Pan American. Show all posts
Showing posts with label Pan American. Show all posts
Tuesday, July 6, 2010
Friday, July 2, 2010
BP's (NYSE:BP) Stake in Pan American Would Generate $9 Billion
With liquidity being a major factor in the health of BP (NYSE:BP) and their ability to handle the mounting liabilities connected to the Gulf oil spill, speculation that Pan American would generate $9 billion for the company was put forth by the Financial Times, which cited bankers, analysts and industry executives as to the amount it would bring on the market.
BP owns a 60 percent stake in Pan American, which is based in Argentina, and is looking to divest of $10 billion in assets, which would almost handle it all in one sale if it was to materialize.
Other rumors are the oil giant could be looking to divest of assets in the North Sea as well, with those generating up to $3 billion, although they had that in mind before the Deepwater Horizon accident, but could still be in play.
China National Offshore Oil Corporation has shown interest in Pan American, while Russia has shown interest in other assets from BP and is ready to invest with the right deal.
BP owns a 60 percent stake in Pan American, which is based in Argentina, and is looking to divest of $10 billion in assets, which would almost handle it all in one sale if it was to materialize.
Other rumors are the oil giant could be looking to divest of assets in the North Sea as well, with those generating up to $3 billion, although they had that in mind before the Deepwater Horizon accident, but could still be in play.
China National Offshore Oil Corporation has shown interest in Pan American, while Russia has shown interest in other assets from BP and is ready to invest with the right deal.
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