12 Sep 2012

BP selling assets to pay for disaster

8:35 am on 12 September 2012

BP is to sell a number of assets in the Gulf of Mexico for $US5.6 billion to Plains Exploration & Production, a US company.

The company is selling parts of its business to pay for damages arising from the Deepwater Horizon disaster in 2010.

BP said on Monday it has agreed to sell five oil and gas fields in the offshore region to Plains.

The BBC reports the company aims to raise 38 billion euros through asset sales by the end of this year.

The Deepwater Horizon disaster arose from an explosion that killed 11 men on the rig. About 4.9 million barrels of crude oil were discharged into the Gulf of Mexico.

While BP's total liabilities are still not yet known, they could total more $US21 billion.