BP to furnish Chávez assets sales plan

[ChangoLoa]

British Petroleum (BP), which faces huge compensation costs for the oil spill in Gulf of Mexico, is to submit in October to Venezuelan President Hugo Chávez a plan to sell its assets in Venezuela to Russian TNK-BP, a source close to the operation said on Thursday.

BP is to make the proposal to President Chávez during his tour of Russia and Asia, the source told Reuters. The sale could yield BP up to USD 1 billion.

The oil company is selling some foreign businesses -including those in Colombia, Egypt, Venezuela and Vietnam- to pay an indemnification estimated at USD 30 billion for the massive oil spill.

"Chávez's tour of Asia and Russia will be used to make an offer regarding the sale of BP assets to TNK-BP," the source, preferring not to be identified by name, told Reuters.

[dipsydoodle]

1. Wheels within wheels

:rofl:

[bherrera]

2. Not so complicated

BP wants to sell assets, TNK BP, which is owned by BP 50 %, wants to buy them. This is similar to BP allowing the Russian partner to participate in its Venezuelan business, and placing a Russian face on this business, which allows the use of practices to enhance Russian exports to Venezuela (one assumes the Russians will insist the new projects will use a lot of Russian equipment).

It is a simple thing to do, and this allows BP to move to a background position. This they tried to do in the past, and they were stopped by the Venezuelans, who didn't want BP to leave. Because the Venezuelan government wants BP to stay, this is a meeting half way to have a good relationship between all the parties.