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BP Argentine assets on sale to pay for Gulf of Mexico spill; China interested

Friday, July 2nd 2010 - 03:32 UTC
Full article 54 comments
BP has a majority stake in Pan American Energy BP has a majority stake in Pan American Energy

China National Offshore Oil Corp., the country’s third-largest oil and gas company, declined to comment on reports it is holding talks to buy as much as 9 billion US dollars of BP Plc’s assets in South America.

“We don’t comment on market rumours” Jiang Yongzhi, a Beijing-based spokesman for China National, said.

The state-owned Chinese energy company has expressed an interest in buying a 60% stake BP owns in the Argentine oil and gas producer Pan American Energy, The Guardian reported earlier this week, without saying where it obtained the information. Sheila Williams, a London-based spokeswoman for BP, declined to comment about the talks which were also reported by Sky News.

BP is looking to raise money to help pay for the clean-up operation in the wake of the oil spill in the Gulf of Mexico, The Guardian said. China National already owns 20% of Pan American through its stake in Bridas Corp., the U.K. daily newspaper reported.

BP last month promised to set aside 20 billion USD for the cleanup and compensation for the spill, and it said it will sell assets to raise funds after cancelling the dividend for three quarters.

The company’s share price has dropped 50% since the April 20 blow-out on the Deepwater Horizon rig that killed 11 and started the worst oil spill in US history.

State-controlled Chinese energy companies have spent at least 20 billion USD buying oil and gas assets overseas in the past 12 months to meet increasing demand in the world fastest- growing major economy.

Financial Tags: 0883.HK.

Top Comments

Disclaimer & comment rules
  • Think

    What was I Saying to “Argie” and other “Oilmen” yesterday when they kindly“informed me about the ”Brutishness“ of PAE??? ”....... Oh yes.....
    A little “cut & paste and voilà:

    ”(32) Argie
    For your kind info:
    BP has already decided to sell their shares in Pan American Energy to the other partners months ago.
    In line with the political and economical realities of today's Argentina .
    But, of course this kind of info is NOT on the first 3 lines of your browser when you google.
    You have to work a little bit harder Sir.”

    Jul 02nd, 2010 - 04:17 am 0
  • NicoDin

    Here the story of how close to bankruptcy BP is

    And Beef investment inc laughed when I mentioned.

    Haha They don't even know what they buy

    Jul 02nd, 2010 - 05:39 am 0
  • Hoytred

    I thought that they'd bought Rockhopper or FIG or somesuch? Are they BP?

    Of course it could just be BP's way of exiting Argentina so that they can get into the 'medium crude' around the islands. They are, after all, comitted to deep water exploration!

    Assuming they survive as a business .... financially aren't they as wealthy as a small country?

    Hey ho .... Brits out, Chinks in ...... :-)

    Jul 02nd, 2010 - 07:08 am 0
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