By Andy Sambidge
Investment proposals from region have already been made to BP advisors - report.
Middle East investors are thought to be mulling over a possible investment in stricken oil giant BP, it was reported on Sunday.
As problems continue to hit the company amid the oil spill in the Gulf of Mexico, informed sources said proposals from the region had already been made to BP advisers in London, UAE daily The National reported.
“BP knows there is potential support from the Middle East,” a source told the paper, adding that Middle East investors would also consider buying key assets from BP.
The company's balance sheet has been badly damaged by the cost of cleaning up the oil spill in the Gulf of Mexico with estimates putting the clean-up cost as high as $60bn.
In London, a BP spokesman declined to comment on the possibility of an investment from the Middle East, the paper added.
BP shares have fallen 50 percent since the rig accident, which claimed 11 lives and has led to the worst environmental disaster in US history, the paper said.
An investment of $10bn would buy about 11 per cent of BP, it added.
Why would anyone invest in this junky company?
No International Oil Company/IOC or Gulf Country in their right mind should invest in BP until the well is capped and the final $ tally comes in for the clean-up and the reimbursement for the livelihood of the people in the Gulf of Mexico region.
hmmmm I tend to invest in assets that are trading at a discount...and that is BP...they are weak but they are not out. Just jumped in last week.. unfortunately did not have 10 bln the minute the leak is capped the stock will jump...markets hate uncertainty and that is the time to buy, when there is blood on the streets..classic time
Gordon, - When will the well be capped? BP has been wrong many times with their schedules. Will the well be capped in Auguest? hmm.....And will BP go below 25? Hmmmm.... Day Traders love uncertainty and to sell short. Good Luck!
not a day trader, average position held is about 18 months. If I am wrong, then why is BP worried about predators now circling the company? It has lost 60 billion in value and the cost is perhaps 20 billion. If you want to make money in the stock market you buy discounted assets when no one wants them, much better than buying high believe me
I agree with Steve here... There is no good reason to believe BP's engineers when they say it will be capped in August... in fact, if you go strictly on their record, you will see that they missed their deadlines several times in the last 76 days. More importantly, there are bigger problems at the oil company... a lack of leadership, an impending management shakeup, low morale... etc. BP employees are regarded worse than lawyers or real estate agents nowadays... Even US politicians who love supporting big oil is very keen not to be seen too close to BP's lobbyists. Consumers believe that by not supporting BP they are doing their bit for the environment, and this in turn will affect the channel in the BP chain. Methinks there is still a lot of oil to flow under bridge in this saga... and I will be suprised if BP survives this ordeal.