Posted: Monday, 10 September 2012 7:26AM
BP sells billions of Gulf assets in effort to survive
BP is selling some deepwater Gulf of Mexico oil and gas properties to Texas-based Plains Exploration & Production Co. for $5.55 billion.
"They are trying to sell their assets and reposition themselves, basically for survival," Price Futures Group Sr. Market Analyst Phil Flynn explained. "They are circling the wagons... to try and survive for the future."
He says with billions in federal fines from the 2010 oil disaster still looming and continued Gulf restoration costs, BP needs more money.
The company says it is working to generate cash and refocus.
"The divestment is in line with BP's global strategy of playing to its strengths, including the development of giant fields and deepwater exploration. It also reflects a greater focus in the Gulf of Mexico on producing more high-margin barrels from fewer, larger assets," BP says in a news release. "BP will concentrate future activity and investment in the Gulf on growth opportunities."