By Houston Business Journal

BP Plc is looking for a strategic investor as the oil giant continues to struggle to contain the massive oil spill in the Gulf of Mexico, according to various news reports.

Britain⿿s Sunday Times reported that BP is reaching out to ⿿rival oil groups and sovereign wealth funds⿝ to take a 5 to 10 percent stake in the firm.

And, a newspaper out of Abu Dhabi called The National cited sources who claimed Middle East financial institutions might make a strategic investment in the firm.

The Guardian also reported that BP was in discussions with the Kuwait Investment office to significantly boost its stake in the company.

Indeed, BPâ¿¿s stock price has cratered since the April 20 Deepwater Horizon rig explosion that has resulted in the largest oil spill in U.S history â¿¿ making it vulnerable to all kinds of speculation.

Shares closed at $29.39 on July 2, way down from their closing price of $60.48 on April 20.

Last week, BP was the target of takeover talk with Exxon Mobil and Royal Dutch Shell being named as potential suitors.

This week, BP (NYSE: BP) asked Anadarko Petroleum Corp. (NYSE: APC) and Mitsui, its partners in the affected Macondo well, to help foot the bill of the spill cleanup. Costs so far have reached $3.12 billion.

The Houston Business Journal is providing continuous coverage of the Gulf oil spill.

Copyright 2010 American City Business Journals
Copyright 2010