BP Raising $50 Billion to Pay for Oil Spill? - TheStreet

BP Raising $50 Billion to Pay for Oil Spill?

BP is reportedly looking to raise as much as $50 billion to help with the financial burden caused by the oil spill in the Gulf of Mexico.
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(BP) - Get Report

is planning to raise $50 billion to cover its unquantifiable liabilities in the Gulf of Mexico oil spill, according to a reports. Last week, the first reports surfaced the BP would seek to tap the bond markets with a $5 billion to $10 billion debt deal. Over the weekend, London's

Sunday Times

reported that in addition to the debt deal, BP hopes to raise $20 billion from banks and $10 billion for asset sales over the next two years.

BP had said last week, when announcing its dividend suspension and $20 billion escrow account, that it would seek to divest as much as $10 billion in non-core assets as part of shoring up the balance sheet given the oil spill liabilities.

A BP spokesman declined to comment on the

Sunday Times

report. Between the $7 billion to $8 billion not being paid out in 2010 dividends, the $10 billion already announced by BP as part of planned asset sales, the $20 billion placed in the escrow account, and the reported bond deal, $50 billion related to the oil spill would already be attained without adding another $10 billion in asset sales or $20 billion in a bank facility.

BP shares were trading down in London by close to 4% on Monday.

Over the weekend, Rep. Ed Markey (D. Mass.), Capitol Hill point man on the BP oil spill, said that Congress would also be keeping a close eye on other companies linked to the oil spill, and making sure that companies including

Anadarko Petroleum

(APC) - Get Report

pay their portion of liabilities from the oil spill. Anadarko's CEO James Hackett put out a statement after the market closed on Friday referring to BP's actions as "reckless" and seeking keep much of the blame -- and ostensibly the oil spill liability -- on the embattled British oil giant. After the comments made by Anadarko, there were reports over the weekend that BP might pursue a lawsuit against its partner in the Macondo well. Anadarko owns 25% of the BP well.

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Both BP and Anadarko opened down in the U.S. on Monday morning, with BP down 3.8% to $30.57 and Anadarko down 0.8% to $42.22.

-- Reported by Eric Rosenbaum in New York.


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