BP Continues Restructuring With $7 billion Sale of Pan American Stake
BP will collect $7.06 billion for the transaction. The payments for the deal will be spread over three periods, and the transaction will close next year
According to The Wall Street Journal, BP has quite a war chest now. "The deal is the latest in a series of asset sales aimed at raising money to cover the estimated $40 billion cost of the Gulf of Mexico oil spill," the Journal reports. BP has, by it own estimate, spent over $5 billion in direct costs in the process so far.
BP's last quaterly statement shows the firm had $161 billion in assets, so with the sales in the past and the Pan American Energy transaction, the size of the company will have dropped by nearly a quarter since the spill began.