NEW YORK (
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
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
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
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.
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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