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BP's Pan American sale falls through
Posted 07.11.2011 08:48:24 av John Bradbury
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BP's plans for one of its biggest asset sales since the Macondo well blowout and oil spill in the Gulf of Mexico last year has fallen through.

BP said its intended $7.06 billion cash sale of its 60% stake in Argentinian operator Pan American Energy to Bridas Corporation is not going ahead after the deal was delayed. 

Bridas failed to get clearance from Argentine anti-trust rules and Chinese regulatory approvals which were required to satisfy conditions of the sale.

Bridas – which had exclusive responsibility for obtaining those clearances - sent BP a notice of termination on the sale on Friday 5 November. Bridas is half-owed by CNOOC Limited, China's biggest offshore oil producer.

Today BP, which agreed the sale $7.06 bn sale to Bridas last November, said it would now repay to Bridas a $3.53 bn deposit received at the end of last year, plus a further $700 million: “.... in full settlement of any and all past claims between the two companies.”

“In November 2010 and under different circumstances from those at present, BP agreed the sale of its interest in PAE as an early element of its divestment programme to strengthen its balance sheet. Since June 2010, excluding the PAE assets, BP has agreed asset sales totalling over $19 billion,” the Anglo-American oil giant explained. Last month, BP said it was extending its asset divestment programme to $45 bn.
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