BP's $7 bn stake sale collapses
BP's plan to sell a stake in its South American unit for $7bn (£4bn) has collapsed, making it more difficult to raise its payout to shareholders.
China's CNOOC said yesterday its 50 per cent-owned unit Bridas Energy Holdings has terminated a deal to buy BP's stake in the Argentina-based oil and gas group Pan American Energy (PAE).
BP hinted at its third-quarter results last month that it would announce an increase in its dividend in early 2012. However, the failure of the sale of its 60 per cent interest in PAE could mean cash flow is lower than might have been expected, making it harder to raise the dividend.
At the results, BP said the deal, initially signed last November, was not as important to its cash flow today as it was a year ago.
BP will repay a deposit of $3.5bn received for the PAE stake at the end of 2010, which it said will not have an impact on its level of gearing.
BP's planned sale of the stake was intended to help raise funds to pay for the clean-up of its Gulf of Mexico oil spill in 2010. REUTERS
Actress sees off speculation about her appearance in an amazing way
Powerful images of strays taken moments before being put down
Enid Blyton’s Magic Faraway Tree really is being made into a film
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Darren Vann: Indiana man arrested for murdering teenage prostitute confesses to six other murders - and police fear more
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...