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Middle East Buyers Eyeing BP Investment

From a cheering Associated Press:

BP costs for oil spill response pass $3 billion

By Tom Breen, Associated Press Writer

July 5, 2010

NEW ORLEANS – BP’s costs for the disastrous Gulf of Mexico oil spill climbed nearly half a billion dollars in the past week, raising the oil giant’s tab to just over $3 billion for work on cleaning and capping the gusher and payouts to individuals, businesses and governments.

London-based BP PLC, the largest oil and gas producer in the Gulf, released its latest tally of response costs Monday. The total of $3.12 billion was up from $2.65 billion a week earlier. The figure does not include a $20 billion fund for Gulf damages BP created last month

And here is more good news for our President and his party, also from a gladdened Associated Press:

Mideast buyers reported to be eyeing BP investment

By Adam Schreck, AP Business Writer Sun Jul 4, 2010

DUBAI, United Arab Emirates – BP may be looking to sovereign wealth funds in the oil-rich Middle East to fend off takeover bids amid mounting costs from the Gulf of Mexico oil leak disaster, according to reports published Sunday.

The National, an Emirati newspaper, cited unnamed "informed sources" in the region saying that Mideast financial institutions have submitted proposals to BP advisers and are waiting for a response. Among the options being considered are the acquisition of key assets or a direct cash injection to help strengthen the oil giant’s balance sheet, according to the English-language paper.

The paper quoted a person it called an informed source as saying that "BP knows there is potential support from the Middle East."

The National is owned by the government of Abu Dhabi, one of seven emirates that make up the United Arab Emirates federation. The sheikdom hosts the country’s capital and controls nearly all the OPEC member state’s oil reserves…

The article coincided with a report in London’s Sunday Times that BP is looking for a strategic investor to help fend off takeover attempts. It said the company’s advisers are looking to rival oil groups and sovereign wealth funds to take a stake of 5 percent to 10 percent in the company at a cost of up to $9.1 billion (6 billion pounds).

BP has lost more than 50 percent of its stock market value since the Deepwater Horizon oil rig exploded in April, causing the worst offshore oil spill in U.S. history.

Its share price plunge has put the oil giant at risk of an unwanted takeover approach from rivals like Exxon Mobil or Royal Dutch Shell.

Middle East investors have ridden to the rescue of Western companies in past times of financial need

Yes, won’t it be wonderful if still more of the world’s oil supply ends up under the control of the Middle East?

What could possibly go wrong?

This article was posted by Steve on Monday, July 5th, 2010. Comments are currently closed.

3 Responses to “Middle East Buyers Eyeing BP Investment”

  1. NoNeoCommies says:

    Maybe they will run things better or at least hire a good PR firm to avoid saying stupid things in press conferences and interviews.
    We can always take a cue from “Hurricane Hugo” Chavez and nationalize them later.

    • tranquil.night says:

      “hire a good PR firm to avoid saying stupid things in press conferences and interviews.”

      I’m not convinced those gaffes weren’t explicitly requested by the company’s current PR team of the past two months: the Moron regime. I have great apprehension that any executive is such a dunce as to go on national TV and talk about their care for the little people – twice.

      So OPEC wants to give BP a bailout stimulus? 10% is just the buy-in because we all know the regime is going to drag this out to the most expensive extent possible. Arco is a BP chain and they’re consistently 10-15 cents cheaper a gallon than the OPEC ones here in California. I gotta figure that competition has been keeping prices somewhat stable but not much longer.

      The drilling and permit moratorium will have a real and imminent effect on production. Look for prices to balloon and for these jerks to reap fatcat profits. I’d say it all looms just beyond the election but who knows with this bunch. The Sheikhs have always had Bam’s blessing to start jacking up prices.

      Politically he seems like he’s trying to recreate the FDR effect. So much crisis & so much disaster that Americans assume a total dependency on the government and its current personality for stability.

  2. Chinnubie says:

    Just makes one feel so good that our wonderful young inexperienced president has such enormous hate for the culture and standing of American business to operate under the guise of doing the right thing for the environment.

    I think it’s safe to admit this administration is deliberately destoying the United States of America. I am really looking forward to a day when we will be able to leave the cave and go hunting for our food because the horrible, evil, grocers in our respective areas are making a modest profit and as we all know, we can’t have anyone out there making a profit. Profit instills hate among the “small” people who aren’t able to own a grocery store, therefore making it unfare for a grocery store to operate. Am I wrong??

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