BP (BP) Divests of ARCO for $680 Million

Even though it is a solid, growing asset, ARCO Aluminum isn't a core holding of BP (NYSE:BP), and the giant oil firm announced it has sold it to a consortium of Japanese companies for $680 million.

"Although a strong business, ARCO Aluminum is clearly a non-strategic asset for BP. Today's agreement will deliver an attractive price for the business, unlocking its value for our shareholders," said BP Chief Executive Bob Dudley.

BP is still attempting to raise approximately $30 billion by the end of 2011 via divestments in order to pay various claims and/or lawsuits.

Included in the Japanese group are Sumitomo Light Metal Industries (5738.T: Quote) (40 percent), Furukawa Sky Aluminum (5741.T) (35 percent), Sumitomo Corporation (8053.T) (20 percent), and Itochu Metals Corporation (3 percent).

BP (NYSE:BP) closed Monday at $45.89, gaining $0.23, or 0.50 percent.

BP (BP) Sells Anadarko (APC) Natural Gas Plant for $576 Million

BP (NYSE:BP) announced it has sold its Wattenberg Gas Plant natural gas plant to Anadarko Petroleum (NYSE:APC) for $575.5 million. Anadarko already had a stake in the facility.

The plant processes gas from Colorado’s Denver Julesburg Basin, where BP no longer has investments, he said. The plant produces approximately 195 million cubic feet of gas a day and 15,000 barrels a day of natural gas liquids and gas condensate.

BP owns close to 94 percent of the plant while Anadarko owns the other 6 percent.

The all-cash deal is expected to close sometime in the middle of 2011.

Anadarko closed Tuesday at $80.79, gaining $0.81, or 1.01 percent. BP closed at $45.74, down $0.06, or 0.13 percent.

BP (BP) Buys Majority of Brazilian Ethanol Producer

BP (NYSE:BP) announced it has acquired a majority stake in Cia. Nacional de Acucar & Alcool (CNAA), a Brazilian ethanol and sugar producer, for $680 million.

CEO Robert Dudley said in a statement, “This strategic acquisition underlines BP’s commitment to building material businesses in growing economies and continued expansion in Brazil through exploration and production, as well as biofuels investments. This is the biggest acquisition to date for BP Alternative Energy as we continue to build a leading low carbon fuels business.”

The giant oil company is still waiting on the Brazilian government to approve its acquisition of offshore exploration licenses in Brazil in 2010 from Devon Energy (NYSE:DVN).

What BP gains control of in the CNAA deal is two producing ethanol mills in the Brazilian states of Goias and Minas Gerais. A third mill is being constructed at Minas Gerais as well.

BP closed Friday at $45.75, up $0.09, or 0.20 percent.

BP (NYSE:BP) Oilfield Battle Lost to Alaskan Heirs

BP (NYSE:BP) and its partners in the Niakuk oilfield on the North Slope: Exxon Mobil Corp (NYSE:XOM), ConocoPhillips (NYSE:COP), and Chevron Corp (NYSE:CVX), were ruled against by a federal judge, resulting in the U.S. Bureau of Indian Affairs have to pay out $4.92 million to heirs of Andrew Oenga.

Oenga signed a lease agreement with the oil companies which allowed them to develop and produce crude from Niakuk.

Heirs of Oenga claimed BP and its partners used more of the land than the lease agreement allowed, setting up the legal confrontation.

The Bureau of Indian Affairs had to pay out based on the conclusion they had violated its fiduciary duty to collect fair compensation for commercial use of the land.

Judge Nancy Firestone of the U.S. Court of Federal Claims in Washington, D.C. agreed with the heirs, saying, Firestone, in a ruling issued late Tuesday, agreed with the family. "The rent paid thus far to the Oengas has covered only the authorized use of the allotment."

BP and its partners may be asked to pay for part of the award given the family.

Steve Rinehart, spokesman for BP Exploration (Alaska) noted, "We are considering alternative ways to reach and develop resources in that area."

BP closed Wednesday at $45.83, dropping $0.54, or 1.16 percent.

Bank of America (NYSE:BAC) Hired by ConocoPhillips (NYSE:COP) for North Sea Asset Sales

According to people close to the situation, Bank of America (NYSE:BAC)has been retained by ConocoPhillips (NYSE:COP) to help them in selling their assets in the North Sea.

The actual sales process could start soon, according to the sources, who identified northern, southern and central regions of the North Sea as the stakes to be sold are located.

Also attempting to sell North Sea assets are Exxon Mobil (NYSE:XOM) and BP Plc (NYSE:BP). Most of the assets are those slowing down in production.

The companies want to divest of the assets in order to explore other areas that would probably be more productive.

John Roper, a spokesman for ConocoPhillips said, “ConocoPhillips announced in 2009 that it intends to sell approximately $10 billion of assets over a two-year period. The dispositions will occur across the company’s exploration and production and refining and marketing portfolio. This disposition could include our southern North Sea operations and some of our U.K. non-operated assets.”

Bank of America had no comment on the matter.

BP (NYSE:BP), Russian Billionaires Ordered to Arbitrate over Rosneft Venture

Russian billionaires who are partners with BP (NYSE:BP) in the TNK-BP joint venture, won an order from a British court to block the proposed joint venture with Rosneft to explore in the Artic.

The court ordered the two parties to arbitration to settle the matter, which must take place by February 25.

According to the Russian billionaires, they had the right of first refusal on any work BP would perform in the country.

David Peattie, BP’s head of Russian operations, responded to the order saying, “It has always been BP’s position that these matters should be resolved through arbitration, and we are pleased that this is what the court has now decided.”

Rosneft and BP has agreed to a share swap in order to form the partnership to explore the Arctic waters.

BP closed Tuesday at $47.98, gaining $0.51, or 1.07 percent.

BP (NYSE:BP) Raising Minimum of $4.4 Billion Via US Refinery Sales

Saying it wants to focus on plants able to increase diesel production and heavy crude, BP (NYSE:BP) announced in their earnings report they're going to sell about half of its refining capacity in the U.S., which will raise at least $4.4 billion for the oil giant.

This is also part of their effort to divest of assets in order to raise billions to pay for the growing costs associated with the oil spill in the Gulf of Mexico.

Iain Conn, BP’s head of refining and marketing, said about the proposed refinery sales, “These are not average refineries, these are some of the most highly upgraded in the world. We would expect to get a value above the benchmarks.”

Refineries to be sold include those in Carson, California and Texas City, Texas.

BP will keep and focus on U.S. refineries in Cherry Point, Washington and Whiting, Indiana, along with its 50 percent stake in the Toledo, Ohio, plant. The reasoning behind the decision to keep these refineries, according to BP, is because they offer “greater flexibility to refine a range of crude oils including heavy grades, and on average are more diesel-capable than BP’s current portfolio.”

Also being sold by BP, is their infrastructure, power generators and distribution terminals, which should bring the amount raised beyond $4.4 billion.

BP expects to complete the sales sometime in 2012.

BP (NYSE:BP) Risk Continues to Shrink Says Benchmark

Benchmark continues to like BP (NYSE:BP), as they see risk shrinking in relationship to the company, and upstream growing.

They said, "we are reducing our estimate of pre-tax Macondo related costs ultimate borne by BP due both to a reduction in our estimate of the overall level of spill-related charges, as well as our belief that such charges will be, to some extent, shared among partners and service contractors."

Benchmark reiterates their "Buy" rating on BP (BP), which closed Wednesday at $46.76, down $0.45, or 0.95 percent. Benchmark boosted their price target on BP from $46 to $65.

BP (NYSE:BP) Sells Pakistan Assets to United Energy Group

BP (NYSE:BP), after turning away a bid from the two largest oil and gas companies in Pakistan, announced they have sold the assets to United Energy Group for $775 million.

They continue on with their strategy of divesting of non-core assets in order to raise up to $40 billion to pay for liabilities related to the oil spill in the Gulf of Mexico.

Shares of BP were trading higher today, with volume exceeding 3-month daily averages. They were at $44.38. up $0.95, or 2.19 percent, as of 2:46 PM EST.

BP (NYSE:BP) May Sell Bonds to Chinese to Meet Gulf Liabilities

If BP (NYSE:BP) ends up selling bonds to the Chinese, which they reportedly have been thinking about, it would be a change in direction from the desired route of selling assets to raise the approximate $40 billion to meet expected liabilities from the Gulf oil spill.

That could imply a desire to hold on to some valuable assets they may otherwise have to divest themselves of.

BP has been selling bonds recently, but for the most part that has been for other purposes and not necessarily tied directly to Gulf liabilities.

Taking on more debt has risks and higher costs, which would be reflected in an increase in the cost credit-default swaps, which protect buyers from default. BP is paying about twice for credit default swaps as they had before the oil spill.

BP closed Wednesday at $43.27, up $0.38, or 0.89 percent.

BP (NYSE:BP) Contemplating Selling North Sea Assets

Rumors have been circulating the BP (NYSE:BP) is weighing whether or not to sell some of their North Sea assets, which with the one's they're considering, would bring another $1 billion into the fold to pay for liabilities from the Gulf of Mexico oil spill.

An unidentified source says BP is thinking of some infrastructue and fields in the region, although there has been no decision made on whether they're going to go through with a sale of assets there or not.

So far asset sales from BP has raised $21 billion of the approximate $40 billion BP believes they need to pay for the damages. Originally they had thought they would need only $30 billion.

BP has extensive assets in the North Sea, including 50 joint ventures with 40 companies, which make it impossible to know which of those they are considering. They also run over 30 fields in the area.

Infrastructure includes the Sullom Voe oil terminal on the Shetland Islands, two gas terminals, and 10 pipeline systems.

Goldman (NYSE:GS) Shows BP (NYSE:BP) Some Love, Upgrades them to "Buy"

After generating results beyond expectations, BP plc (NYSE:BP) was upgraded today by Goldman Sachs (NYSE:GS) from "Neutral" to "Buy" on the stronger-than-expected quarter and valuation.

Citing the attractive valuation whereby BP is trading at a 2011E 14% EV/DACF discount after paying out liabilities after the Gulf of Mexico oil spill, they see the company beginning to come back.

There is also light at the end of the tunnel for selling off its assets, which is probably more of a positive than most analysts and commentators note, as it's helping them to whittle down the non-core assets to be a much stronger company over time. So far they've raised about $14 billion, with another approximate $16 billion targeted for sale within the next year.

That puts them in a more predictable light, which makes shareholders and investors less nervous.

Goldman also likes that BP raised their earnings per share estimates for the next three years.

Finally, the reinstatement of the dividend, which is gaining steam, could end up with the income investor base returning said Goldman.

Goldman sees them reinstating the dividend at probably $0.08, and over the next couple of years increasing it to about $0.11.

BP closed Wednesday at $42.37, gaining $0.95, or 2.29 percent.

BP (NYSE:BP) Sells Gulf Assets to Japan's Marubeni

BP (NYSE:BP) to divest of non-core assets to raise capital to pay for its mounting liabilities from the Deepwater Horizon oil spill in the Gulf of Mexico.

This time the oil giant has sold four fields in deepwater areas in the Gulf of Mexico to Marubeni of Japan, for $650 million. This will bring the total amount raised through selling of assets to over $12 billion. BP wants to raise about $30 billion overall to cover itself for existing and potential liabilities.

The specific fields sold are the Merganser, Magnolia, Nansen and Zia fields, which combined produce about 15,000 barrels of oil equivalent per day of oil and gas.

Evidently, BP would have sold these assets whether or not they oil spill happened: "When BP acquired Devon's Gulf of Mexico assets it was clear that these four fields did not fit well with the rest of our business in the region," said Andy Hopwood, vice president for Strategy and Integration.

The deal is expected to close in the early part of 2011.

BP (NYSE:BP) Needs These 5 Things to Happen to Resume Growth

Although there have been some foreign deals forged and implemented by BP (NYSE:BP), which is good news for them and their shareholders, they're still, for the most part, in a holding mold until four major things are handled and resolved.

Only one of the four things needed to be done are under the direct control of BP, and that is the divesting of parts of the company to raise capital to pay for liabilities associated with the Gulf of Mexico oil spill.

The other three things that need to happen are the completed examination of the blowout preventer, determination of whether or not they are found in gross negligence over the accident, and how much, if any, shared liability with partners they'll participate in.

The last thing, which will be mostly determined by the four mentioned above, is the reinstatement of the dividend by BP.

As far as the blowout preventer, that will probably take longer than the rest, and is just starting the process of examination. It's important in whether or not Cameron International, which developed it, will be liable for part of the costs of the spill.

In the largest liability remaining to be determined, BP is awaiting the decision on whether or not they're going to be designated as being grossly negligent in the ordeal. If they are, it could cost them over $17 billion more in fines, above and beyond all existing and future payouts.

That also is connected to the next element, which is shared liability. If they aren't found grossly negligent, their partners in the Macondo well: Anadarko (NYSE:APC) and MOEX, via their majority owned Mitsui (Nasdaq:MITSY), would have to pay out some significant capital for their part in the failure.

Selling of their assets, as mentioned, is under the control of BP, and that will give shareholders and potential investors more confidence in the company, which would ultimately be crowned with the reinstatement of their dividend, which mounting pressure is being asserted on the company to do.

If and when all these happened and/or are concluded, we'll see a much clearer picture of the future of BP, which remains tenuous at best.

Depending on the outcomes of the mentioned events that need to happen, will determine whether BP will be split up or taken over by a larger competitor, or continue on as a leaner but competitive energy firm.

BP's (NYSE:BP) Assets in Venezuela Will be Acquired by TNK-BP

A deal to acquire the Venezuelan assets of BP (NYSE:BP) by TNK-BP, a joint venture between them and a group of Russian billionaires, has been confirmed today by the energy ministers of both countries.

The memorandum was signed between the two nations when Hugo Chavez visited Russia.

Terms of the deal weren't revealed (although in the past it was estimated to be valued at about $1 billion) but the specific assets were, as German Khan, one of the wealthy Russian's with a stake in the venture revealed, include the acquisition of three oil fields: "16.7 percent of Petromanagas, 40 percent of Petroperija and 26.6 percent of Bouqeron," said Khan.

TNK-BP's goal is to expand outside of Russia and ultimately become the largest independent producer based in the country.

BP is selling the asset as part of their goal to raise $30 billion to pay for unfolding liabilities related to the Gulf of Mexico oil spill.

BP (NYSE:BP) Closes Deal with Apache (NYSE:APA) for Canadian Assets

BP (NYSE:BP) and Apache Corp (NYSE:APA) have closed another part of the $7 billion deal where BP is divesting of assets in the Permian Basin, Egypt and Western Canada, this one being the Canadian assets held by the oil giant. They've already closed on the Texas Permian Basin assets.

The Canadian assets were valued at $3.25 billion, which entailed natural gas projects and some oil.

Proven oil reserves were 224 million barrels of oil equivalent, with production in the first half reaching 46,500 barrels of oil equivalent a day.

About 1.3 million net acres were part of the agreement, which included some unconventional oil and natural gas assets.

The Canadian division of Apache will take over operations on November 1.

BP is divesting of about $30 billion in assets to pay for liabilities connected to the Macondo Gulf of Mexico oil well disaster.

BP (NYSE:BP) Role Over for Thad Allen

Former U.S. Coast Guard Admiral Thad Allen and government point man Thad Allen has stepped down from his role of overseeing the operations to kill the leaking BP (NYSE:BP) Macondo oil well in the Gulf of Mexico.

That reaffirms that one stage of the process is over and a new one already begun. Now the claims and legal process is taking center stage, as BP continues to divest of assets to raise the necessary capital to pay for its liabilities.

Taking over as the new National Incident Commander is Rear Admiral Paul Zukunft, who is overseeing the remaining cleanup efforts.

Today Allen joins the RAND Corp. as a senior fellow. The accident on April 20 delayed Allen joining the research organization prior to this, as he was called on to manage the disaster, watching over BP and its actions.

It has been about two weeks since the formerly leaking oil well was officially declared dead.

BP (NYSE:BP) to Receive Offer from TNK-BP for Vietnam, Venezuela Assets

Reportedly BP (NYSE:BP) will be getting a formal offer from TNK-BP Ltd, a joint venture between the company and several Russian billionaires, for its assets in Venezuela and Vietnam.

BP is attempting to raise about $30 billion by selling off assets in order to pay for the growing liabilities it faces for the Gulf oil spill.

They've already raised about $10 billion of it, and would probably be at close to $15 billion after selling the assets (including Algerian assets). TNK-BP also has an interest in the Algerian assets of the oil giant, but that is separate from this potential deal.

The board of TNK-BP has given the company permission to start negotiations.

Strong ties of Russia with Vietnam and Venezuela make it highly probable there will be no problems in working out a deal from the perspective of those countries.

Former BP CEO Tony Hayward has now taken a seat on the TNK-BP board.

BP (NYSE:BP) Oil Well Declared Officially Dead, Most Oil Gone

BP (NYSE:BP) had an important but muted victory this weekend, as if finally and officially permanently sealed the stricken oil well, closing one chapter of the saga.

The vast majority of the oil which leaked from the well is gone, according to government officials, but some still remains, and it's uncertain as to what extent it's doing damage to the region.

Some scientists have made attempts to say there is a lot more oil left than the government asserts, but their arguments are extremely weak, and evidence small and unconvincing.

These scientists have agendas, and that is to obtain more research money for their university departments. Saying there is more oil than there is, attempts to generate the idea in the public mind that there is more research needed.

So far BP has spend close to $9.5 billion on cleanup, and is paying out another $20 billion via a compensation fund administered by Kenneth Feinberg.

They're also selling up to $30 billion in assets in order to pay for legal claims and other fines they may have to face.

BP's (NYSE:BP) Vietnam Assets Getting a Bid

Indian Oil Secretary S. Sundareshan revealed on Saturday that state-run "Oil and Natural Gas Corp" will be making a joint bid with Petrovietnam for the Vietnam assets of BP (NYSE:BP).

The bid should come within a few weeks said Sundareshan, after an evaluation of the assets is completed.

"They (ONGC) are making an evaluation of the value of BP's assets, and once that is finalized they will make an offer in conjunction with Petrovietnam," Sundareshan said.

The Indian government will need to approve of the deal because of production-sharing contracts held by Cairn India for exploration blocks for oil and gas.

According to UBS (NYSE:UBS) analysts, the Vietnam assets are valued at about $966 million, which include the Phu My power generation project, interests in the Lan Tay and Lan Do gas fields, and the Nam Con Son pipeline.