Tuesday, 25 January 2011

BP Sells Four Gulf Oil and Gas Fields to Help Pay for Spill Damage

BP was able to get $650 million for four of its recently purchased oil and natural gas fields in the Gulf of Mexico. This is part of a continuing effort on the part of the company to sell of assets to raise capital to pay for damages, fines and pending lawsuits related to the Deepwater Horizondisaster. Marubeni Oil & Gas purchased the fields from BP for $650 million in cash. BP initially purchased the fields, named Magnolia, Merganser, Nansen and Zia, from Devon Energy in March of this year.

With the oil no longer flowing into the Gulf, BP has been able to focus its resources on restoring its public image and trying to navigate the administrative hassles associated with processing thousands of claims from businesses and residents in the area. Thus far, most parties are frustrated with the process, but because most of the American media has moved on from the story, there is little political fall-out associated with the ordeal.

As mid-term elections approach, it will be interesting to see which politicians try to use the BP disaster to paint the Obama administration and other local leaders as incompetent. Reports are still conflicting about exactly what caused the disaster and who should be considered liable for the devastation.

Recent environmental reports suggest that the coral reefs near the spill zone are in better shape than scientists had estimated, but it's extremely difficult to get objective information as it flows through various government agencies. The government has a vested interest in presenting things as positively as possible.

By Buzzle Staff and Agencies
Published: 10/25/2010