British Petroleum is planning to shell out some of its Gulf of Mexico oil fields valuing approximately $7 billion. The company is in negotiations with Plains Exploration & Production Co, according to a report from Reuters.
The decision was largely a result of the company’s endeavour to heave money to clear the piled up damages that was generated from 2010 Deepwater Horizon oil spill. Though there is still no legal confirmation on the amount that the company needs to pay as per damage control, n the company had been charged by the U.S. Justice Department for gross negligence and wilful misconduct over the spill. If proved guilty by the federal judge also, British Petroleum would need to pay a fine of $21 billion as part of the civil damage.
The company plans to sell a number of its Gulf of Mexico fields along with its positions in the Marlin, Horn Mountain, Holstein, Ram Powell, and Diana Hoover fields. The company is likely to crack the deal with Plains. Based in Houston, the company is an independent oil explorer and producer with market capitalization of $5.2 billion, as reflected through the market reports of Friday. Working towards building its oil assets, the company already has assets in the Gulf, as well as in California, Texas, Louisiana, and the Gulf of Mexico.
Though according to the Wall Street Journal, the deal could be announced as soon as this week, another source highlighted on the continous discussions between the two parties hinting that the deal could still fall apart. Another person familiar with the matter said that BP has been shopping the Gulf of Mexico offshore oil fields to potential buyers. However, representatives of both the companies were unavailable to confirm and elaborate on the deal.