Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

World Financial Market Nervous over BP's Possible Collapse

Companies / Oil Companies Jul 12, 2010 - 12:07 PM GMT

By: Pravda

Companies

The British Cabinet of Ministers gathered for a special meeting to discuss the future of one of the world's largest oil companies in the world, British Petroleum, in connection with the liquidation of the consequences of the ecological disaster in the Gulf of Mexico.


BP has been suffering enormous losses for three months in a row. Britain's financial and economic top officials conducted a special meeting to discuss possible actions, which the British authorities may have to take in the event the oil giant either collapses or goes bankrupt. The officials even considered a variant at which BP could be nationalized, The Times wrote (the company had been in state property before 1987).

All the efforts taken so far to contain the oil spill have brought no results. Tens of thousands of barrels of oil continue to spill from the ruptured pipe. It has been officially acknowledged that the ecological disaster had caused significant damage to all states on the coast of the Gulf of Mexico, The Associated press said. BP has been able to remove only 60 percent of the spilled crude in 77 days after the beginning of the disaster. The company originally said that it would be able to retrieve that amount of crude from the Gulf in only one day, The Washington Post said.

Russia Today: Toxins from Gulf of Mexico reach Capitol Hill

BP's market value halved to $64 billion after US President Barack Obama ordered the company's administration to establish a $20-billion foundation to compensate the damage caused as a result of the largest ecological disaster in US history. BP's financial liability is evaluated at $70 billion.

The company continues to suffer losses. Rumor has it that one of the world's largest oil companies may be taken over or broken up. Royal Dutch Shell and Exxon Mobil may conduct the takeover procedure for the troubled company if it proves impossible to contain the oil spill.

British Petroleum is a strategically important company for Great Britain. Until recently, it provided 10,000 jobs to British nationals and returned the profit of up to 6 billion pounds sterling ($10 billion) a year. BP owns highly relevant energy infrastructure, including the Baku-Tbilisi-Ceyhan pipeline and Forties system of pipelines, which connects 50 oil and gas deposits in the North Sea.

BP's expenses connected with the oil spill disaster have been gathering like a snowball. British officials fear that the company may not be able to pay its dividend to pension funds of the nation.

BP's administration has already said that it would start looking for a strategic investor in connection with high spending and the reduction of company shares on the stock market. BP's advisors try to convince competing oil companies and state-run funds to acquire up to ten percent of shares for 6 billion pounds ($8.8 billion), The Times wrote.

An official representing the Persian Gulf nations said in an interview with The Financial Times that BP had already addressed investment funds of the regions in an attempt to sell the cheap shares.

The Persian gulf is a home to some of world's largest state-run investment funds, which previously helped Western banks to stay afloat. BP has strong ties with the United Arab Emirates. The company has been maintaining business ties with the countries of the Persian Gulf since the 1930s.

It is not known yet, if Arab sheikhs decide to rescue the British company. An official of Libya's state-run oil company recommended the Libyan Investment Authority should invest in BP against the background of low cost of its shares.

Russia 's Gazprom also eyes BP's assets on the territory of the former USSR. The gas giant is especially interested in BP's 25.5-percent share at Shah-Deniz project in Azerbaijan.

Will BP be eventually nationalized? The market prepares to fight for the troubled oil giant.

Ivan Tulyakov

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in