Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

BP to sell $7 billion in assets to Apache

apache_egypt.top.jpgThe Permian field in Egypt, where BP is selling some assets. By Steve Hargreaves, Senior writer


NEW YORK (CNNMoney.com) -- BP said Tuesday it is selling $7 billion worth of oil and gas assets to oil firm Apache, in the wake of the Gulf oil spill that's draining its balance sheet.

The properties being sold are oil and gas fields and processing plants in Texas and southeast New Mexico, Western Canada, and production and exploration rights in Egypt.

"The board has considered BP's options for generating the cash necessary to meet the obligations likely to arise from the Gulf of Mexico oil spill," BP Chairman Carl-Henric Svanberg said in a statement.

BP (BP) has pledged up $20 billion in compensation funds to the U.S. government as a result of its role in the Gulf oil spill. The company's stock price has been halved since the April 20 disaster, and speculation has been swirling for weeks that it could be taken over by a rival oil company.

BP has suspended its first, second and third quarter dividends, and has reportedly been in talks with sovereign wealth funds about cash infusions, as it seeks to raise money and avoid a takeover.

The asset sales to Apache were part of a previously announced plan to raise $10 billion.

Apache (APA, Fortune 500) is a company that specializes in increasing production from older fields that the major firms no longer find attractive.

"There are opportunities to divest assets which are strategically more valuable to other parties than they are to BP," said Svanberg.

BP is not selling any of its oil sands, Mackenzie Delta or Arctic exploration rights in Canada or any of its Alaska operations.  To top of page

Index Last Change % Change
Dow 15,939.25 -265.72 -1.64%
Nasdaq 4,275.89 -87.25 -2.00%
S&P 500 1,847.85 -32.20 -1.71%
Treasuries 1.78 -0.07 -3.63%
Data as of 10:07am ET
Company Price Change % Change
Bank of America Corp... 12.34 -0.60 -4.67%
Chesapeake Energy Co... 1.83 -1.23 -40.20%
Facebook Inc 100.18 -3.89 -3.74%
Williams Companies I... 10.65 -6.47 -37.79%
Microsoft Corp 48.50 -1.66 -3.31%
Data as of 9:52am ET
Sponsors

Sections

Wall Street's terrible start to 2016 is about to get worse, with the Dow on track top drop nearly 200 points on Monday morning. Oil prices are also back to $30 a barrel. More

Russia, Mexico and southeast Asia stand to lose from the fall in global currencies while others stand to gain, depending on their trade ties with China. More

Laurie Segall sits down with Foursquare's new CEO Jeff Glueck to discuss the company's latest round of funding at a lower valuation, and their hybrid consumer/enterprise business model. More

Nonprofit JumpStart has launched a new $10M fund that will only invest in women and minority-led startups. The catch: You have to move to Ohio. More

Portland, Oregon, is often described as the last affordable cool city on the West Coast. But as more people move to the city, it's becoming increasingly unaffordable. More