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.
Showing posts with label Prudhoe Bay. Show all posts
Showing posts with label Prudhoe Bay. Show all posts
Tuesday, September 7, 2010
Friday, July 23, 2010
BP's (NYSE:BP) Alaskan Assets May Be On the Block Again
After some movement on other assets BP (NYSE:BP) is selling to raise capital to fund its liabilities in the Macondo Well oil spill, reports are they may be opening up talks again concerning assets it holds in Alaska, including the Prudhoe Bay oil field, which they hold a 26 percent stake in.
BP couldn't get the deal done with Apache (NYSE:APA), which seemingly wasn't willing to pay the price BP wanted, with approximately $1 billion separating the parties. BP had asked for about $10 billion and Apache was holding strong at close to $9 billion.
They did sell other assets to Apache earlier in the week for $7 billion, which were located in Egypt and North America.
This week BP also let it be known assets in Vietnam and Colombia were also for sale, which has generated significant interest, especially the Vietnam assets.
A number of government-owned oil companies are always looking out for energy assets to acquire, so BP will get a good price for those the choose to sell, even though it is known they need the cash badly.
Prudhoe Bay also had the sticking point of the right of first refusal from existing partners in the project, which include oil giants Exxon Mobil Corp. (NYSE:XOM), ConocoPhillips (NYSE:COP) and Chevron Corp. (NYSE:CVX). Exxon and Conoco have equal stakes of 36 percent and Chevron a small 2 percent stake.
BP couldn't get the deal done with Apache (NYSE:APA), which seemingly wasn't willing to pay the price BP wanted, with approximately $1 billion separating the parties. BP had asked for about $10 billion and Apache was holding strong at close to $9 billion.
They did sell other assets to Apache earlier in the week for $7 billion, which were located in Egypt and North America.
This week BP also let it be known assets in Vietnam and Colombia were also for sale, which has generated significant interest, especially the Vietnam assets.
A number of government-owned oil companies are always looking out for energy assets to acquire, so BP will get a good price for those the choose to sell, even though it is known they need the cash badly.
Prudhoe Bay also had the sticking point of the right of first refusal from existing partners in the project, which include oil giants Exxon Mobil Corp. (NYSE:XOM), ConocoPhillips (NYSE:COP) and Chevron Corp. (NYSE:CVX). Exxon and Conoco have equal stakes of 36 percent and Chevron a small 2 percent stake.
Tuesday, July 13, 2010
Apache (NYSE:APA) Down on BP (NYSE:BP) Acquisition Reports
Reports that Apache Corp (NYSE:APA) is in negotiations with BP (NYSE:BP) to acquire assets held by the company in Alaska, valued at a little under $12 billion, caused the two stocks to go in opposite directions, with Apache getting the worst of the deal; at least temporarily.
As of 3:20 PM EDT, Apache was at $84.59a share, a decline of $3.26, or 3.71 percent.
BP surged by $2.60 a share, or 7.64 percent, to $36.65. They've added over $15 billion in market cap to the company in the last 10 days or so.
The drop in share price of Apache brought its market cap below $30 billion, and analysts are concerned the approximate $12 billion price tag on the Alaskan property may be too much for Apache to handle alone, even though they did have their debt to market capitalization operate below 25 percent in 2009. That would mean they may have some room for a deal of this size to be made.
But Apache still hasn't officially closed on their Mariner Energy deal last month, where they spend $2.7 billion for that, and they just before that spent another $1.05 billion to acquire the Gulf assets of Devon Energy (NYSE:DVN).
BP would be selling their 26 percent stake in Prudhoe Bay, which is the Alaskan asset being referred to, where their portion in the oil field yielded an average of 69,000 barrels a day in 2009, which would be a nice boost for Apache over the long term.
Continuing economic uncertainty does have analysts and investors nervous if Apache were to go ahead with this big of a deal.
The size of Apache, along with the size of the deal, could imply they are going to buy a portion of Prudhoe, or may have a partner to take up some of the extra costs and resultant stake in it.
As of 3:20 PM EDT, Apache was at $84.59a share, a decline of $3.26, or 3.71 percent.
BP surged by $2.60 a share, or 7.64 percent, to $36.65. They've added over $15 billion in market cap to the company in the last 10 days or so.
The drop in share price of Apache brought its market cap below $30 billion, and analysts are concerned the approximate $12 billion price tag on the Alaskan property may be too much for Apache to handle alone, even though they did have their debt to market capitalization operate below 25 percent in 2009. That would mean they may have some room for a deal of this size to be made.
But Apache still hasn't officially closed on their Mariner Energy deal last month, where they spend $2.7 billion for that, and they just before that spent another $1.05 billion to acquire the Gulf assets of Devon Energy (NYSE:DVN).
BP would be selling their 26 percent stake in Prudhoe Bay, which is the Alaskan asset being referred to, where their portion in the oil field yielded an average of 69,000 barrels a day in 2009, which would be a nice boost for Apache over the long term.
Continuing economic uncertainty does have analysts and investors nervous if Apache were to go ahead with this big of a deal.
The size of Apache, along with the size of the deal, could imply they are going to buy a portion of Prudhoe, or may have a partner to take up some of the extra costs and resultant stake in it.
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