BP Could Face Hurdles In Pakistan Asset Sales
October 17, 2010 8:04 PM
BP's (NYSE: BP) plan to sell $600 million in assets in Pakistan could face some opposition from the country's government, which says it has the right of first refusal, which would allow it to be the first bidder for the assets.
BP has hired Citigroup (NYSE: C) to manage the sale and expects to receive bids by the end of this month.
Pakistan's state-owned Oil and Gas Development Corporation (OGDC) believes it has pre-emption rights, giving it first chance to buy the assets, a mixture of off and onshore fields, according to the Independent, a British newspaper. BP is understood to believe no such deal exists, but some potential bidders fear that OGDC will delay the process, the paper reported.
BP, Europe's second-largest oil company, previously said it would sell its Pakistan assets as part of its plan to divest $30 billion in assets to raise cash for expenses related to the Gulf of Mexico oil spill.
No specific bidders for the Pakistan assets have been mentioned yet.
