21 Jul 2010

BP to sell Asian assets to cover Gulf bill

4:05 pm on 21 July 2010

BP has reached a deal to sell $US7 billion in assets to Apache as the company raises money to cover costs related to the oil leak in the Gulf of Mexico.

Apache will buy oil and gas assets in Texas, western Canada and Egypt through a mixture of debt, equity and cash.

Earlier on Tuesday, BP sold $US1.7 billion worth of assets in Vietnam and Pakistan.

The sales are part of a previously announced plan by BP to sell $US10 billion in assets.

Proceeds from selling the pipelines and other assets, valued at $US1.7 billion, will go into a $US20 billion compensation fund.

BP was previously said to be talking to Apache about selling its share of the Prudhoe Bay oil field in Alaska.

The company was also thought to be looking at a sale of its majority stake in its Argentine Pan American subsidiary, which operates in Argentina, Chile and Bolivia.

The flow of oil in the Gulf of Mexico was stopped on Thursday.

The leak began after a fatal explosion and fire on the Deepwater Explorer rig on 20 April.

BP has put the costs of dealing with the disaster at more than $US3.5 billion.

The BBC reports it has already paid more than $US200 million to 32,000 claimants.