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BP selling assets to pay for oil spill damage

After sacking the chief executive and replacing him, BP are taking steps to save the company’s reputation and also may sell assets in order to overcome cleanup costs.

In order to cover its costs of $32.2 billion for capping the well, the cleanup of the area from the oil compensating victims and paying government fines, BP is looking for ways to get money. One solution could be selling assets. In the last couple of days, media outlets reported about sales agreements and talks with actual or possible buyers.

In most recent news, „sources with direct knowldge” said BP was in talks with India's Reliance Industries and Essar to sell retail assets in Africa with an estimated price tag of $500 million, Reuters reported. The oil giant may also sell Venezuela oil stakes to a Russian venture, according to Bloomberg.

BP said July 27 it plans to dispose of as much as $30 billion in assets in the next 18 months, after reporting a record second-quarter loss because of the costs of the Gulf of Mexico oil spill. In fact, already last week, it sold assets worth $7 billion in Canada, the US and Egypt to Apache Corp. It also plans to sell holdings in Pakistan and Vietnam.

In addition, BP announced that they will kill the well that caused the oil spill at the beginning of next week, incoming BP chief executive, Bob Dudley, said on Wednesday, „It is possible that as early as Monday or Tuesday, this well might be killed," Reuters cited Dudley talking on National Public Radio. (BBJ)