Due to the recent oil spill in the Gulf of Mexico, BP is required to fetch out $20 billion to cover the costs of the spill, which include cleaning expenses, fines, lawsuits, etc. The company is also under threat of being bought out by a competitor. So, the CEO in a last chance move is trying to raise some equity to pay for the cleaning expenses and fend off potential bidders. A Saudi newspaper reported that an unnamed Saudi investor is planing to buy a 10-15% stake. BP’s CEO Tony Hayward is in Abu Dhabi to entice the emirate to invest in his troubled company. Kuwait Investment Authority, which already owns approx. 2% of the oil giant, has stated that they have no intentions of investing further in the company.
BP is also trying to sell some assets to gain some cash. Chinese giants Petro China and SINOPEC have shown interest in acquiring some assets. A company owned by the Kuwait Petroleum Corporation has also shown interest.
Is this infliction point in BP’s storied timeline the end of the British company? Or a start of a new era?
(1 votes, average: 2.00 out of 5)
Loading ...Tags: abu dhabi, ADIA, BP, Gulf of Mexico, KIA, Kuwait Investment Authority, oil spill
Thank you for the article, but I think that the $20 Billion is dedicated to the claims fund only not the other costs; so the number you are talking about is much more higher than $20 Billion.
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i still think they’re exaggerating, BP rakes in $25-30 billion from cashflows without taking into account the macondo rig, how can it go bankrupt is beyond me
on the other hand, it is a prime investment opportunity to buy into BP
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