This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

BP Gets Biggest Criminal Fine After Biggest U.S. Oil Spill

Stocks in this article: BP

In October, BP cut its biggest-ever asset sale divesting a 50% stake in TNK-BP, a Russian oil and gas venture that amounted to 29% of it's the company's daily 2011 oil and gas production, and 27% of its energy resources, tilted towards oil.

Throughout 2012, BP's been doing heavy lifting selling refineries, pipelines and oil fields it sees as not crucial to the company's future, in an effort to sell down a forecast $38 billion in assets by 2013. Were the $12.3 billion in TNK-BP cash to be considered part of that asset sale figure, BP would already be complete on its M&A goals.

In September, BP announced a deal to sell $5.5 billion in Gulf of Mexico oil drilling assets to Plains Exploration and Production (PXP). The assets being shopped already produce roughly 59,500 barrels a day and hold a reported 120 million barrels of oil in production reserves.

BP had sold over $24 billion in midstream assets, and $10 billion in oil exploration and production assets, according to data compiled by Bloomberg through the end of 2011.

In mid-August, BP said it would sell its California oil refinery and 800 statewide gas stations to refining giant Tesoro (TSO) for $2.5 billion.

Even with spill-related asset sales hitting a peak in 2012, BP faces substantial risk when it comes to the lingering legal issues from Macondo, both on government charges and civil ones stemming from the Environmental Protection Agency and local communities impacted by the spill.

In a statement, BP said it continues to face an array of federal, state and private civil claims that were not covered in Thursday's settlement.

"A further announcement will be made if and when final agreements are reached. Until final agreements are reached, there can be no certainty any such resolutions will be entered into," said the company on Thursday.

BP has already spent more than $14 billion in spill cleanup costs, an allocation agreed just months after the 2010 disaster. The company has also created a $20 billion fund to pay spill claims and civil settlements, of which $9 billion has already been paid out, according to a statement by BP.

-- Written by Antoine Gara in New York

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs