BP to raise $50 billion, sue partner Anadarko
22 June 2010
British energy giant BP is planning to raise $50 billion to cover the unquantifiable cost of the oil spill from the Deepwater Horizon blow-out and is preparing to sue its partner Anadarko, for trying to dodge liability by refusing to share the oil spill costs.
BP, which was last week arm-twisted by the US government to cough up $20 billion to be put in an escrow account to compensate people affected by the oil spill and clean up the environment, is said to be raising $50 billion to cover the spill costs , which will also include penalties and litigation costs.
BP will raise $50 billion through the bond markets in a $5 billion to $10 billion debt deal, $20 billion from banks and $20 billion through asset sales over the next two years, reported the Sunday Times on Sunday. It has already announced that it will skip its $10.5 billion 2010 dividend payment.
The London-based oil company has already spent nearly $2 billion in containing the oil spill, clean up operations and paying compensation to people whose livelihood were affected by the spill.
BP, which saw its market value being wiped out by more than £56 billion since the blow-out of the Deepwater Horizon rig in the Gulf of Mexico that occurred on 20 April, suffered another blow yesterday when Moody's credit rating agency downgraded its credit rating by three notches, from A2 to Aa2.
Moody's downgrading came after Fitch and Standard & Poor's had also downgraded the company's rating last week.