London (UPI) Aug 3, 2010
British oil giant BP Tuesday said it would sell its Colombian business to raise cash for the Gulf of Mexico cleanup, as speculation was soaring across Europe what the company may divert next.
BP said Tuesday that a Colombian and a Canadian company had agreed to buy BP's Colombian business for $1.9 billion -- the first step of a larger attempt to raise $30 billion over the next 18 months to pay for the oil spill in the gulf.
"BP today announced that it has agreed to sell its oil and gas exploration, production and transportation business in Colombia to a consortium of Ecopetrol, Colombia's national oil company (51 percent), and Talisman of Canada (49 percent)," it said in a statement. "The two companies will pay BP a total of $1.9 billion in cash ... for 100 percent 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."
The Colombian business owns interests in five oil fields, four separate pipelines and two offshore exploration blocks. Net proved reserves total some 60 million barrels of oil equivalent, the company said.
The sale comes after the resignation of BP Chief Executive Officer Tony Hayward in the wake of the worst-ever quarterly result for the British company, which reported a second-quarter loss of $17 billion.
Hayward, who will step down in October to make way for American Bob Dudley, said he was "delighted with the price we have achieved for these assets."
The sale comes after BP last month agreed to sell a package of assets in the United States, Canada and Egypt to Apache, which has headquarters in Texas, for $7 billion. BP also announced it's planning to get rid of assets in Pakistan and Vietnam, which analysts estimate to be worth around $1.7 billion.
Meanwhile, speculation in Europe is ripe over what assets BP might sell in Europe.
German business weekly Wirtschaftswoche last week cited unidentified investment bankers as saying that BP plans to sell its Aral chain of gas stations. BP owns 2,500 Aral gas stations in Germany that are estimated to be worth around $2.6 billion. The weekly said possible buyers include France's Total, European gas station company Avia and Russia's oil company Rosneft, although the latter has already denied being interested.
BP representatives have in the past days denied that the downstream sector would be affected by sales.
Share This Article With Planet Earth
Powering The World in the 21st Century at Energy-Daily.com
Leak delays BP tests ahead of well 'kill' operation
New Orleans, Louisiana (AFP) Aug 2, 2010
BP said Monday it had delayed last-minute tests before its crucial well "kill" operation in the Gulf of Mexico due to a leak in the cap that is sealing the well. The leak was not expected to significantly delay the planned Tuesday start of the "static kill" operation to plug the ruptured well once and for all with heavy drilling mud and then cement. "During final preparations to commence ... read more
China energy efficiency slips|
Iraq delays gas bid round until October
Booming Morocco opts for GE gas turbines
US Republicans assail trimmed Democratic energy plan
Australia benefits from Indian coal demand
BP asset sales in Colombia -- Europe next?
CSIRO Develops New Oil Detection Technique
BP begins crucial well 'kill' in Gulf of Mexico
LADWP Approves New Wind Project
German wind growth down, exports strong
Study Shows Stability And Utility Of Floating Wind Turbines
Leading French Wind Farm Developer Says Yes To Triton
Green Light On Nevada Solar Thermal Project
Simulations To Improve Solar Cells
New Photovoltaics Products Enables Widespread Use Of Solar Power
Solarmer Energy Breaks Psychological Barrier
Areva reports profit surge from sale of asset
EDF announces 2-year delay, cost hike at new reactor
US, India sign nuclear reprocessing pact
EDF to announce 2-year delay at new reactor: union
Outside View: Follow science on ethanol
Biodiesel Facility Revving Up For Business
New Patent Application For Pyrolysis Oil Based Biofuel
Seeks To Improve Sensors That Monitor Diesel Fuel Quality
China Contributes To Space-Based Information Access A Lot
China Sends Research Satellite Into Space
China eyes Argentina for space antenna
Seven More For Shenzhou
Climate warming 'unmistakable' says report
Obama vows to fight on for climate change bill
Obama vows to fight on for climate change bill
Unaccounted Ecosystem Change Feedbacks May Increase Future Climate Warming
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|