I recently discussed how BP's
While BP has ruled out an equity offering, Sunday newspapers in Europe and the Middle East were chock full of discussions about the company's efforts to round up protective financing, potentially from sovereign wealth funds. The stakes discussed generally involved between 5% and 10% of the company, which would likely bring in roughly $9 billion. Funds getting the most mention are located in Qatar, Abu Dhabi, and Kuwait.
BP also could sell non-strategic assets. For instance, when BP bought Amoco a dozen years ago, the deal created Pan American Energy LLC, the second-largest oil company in Argentina. China's CNOOC
Beyond that, other assets could be jettisoned. Colombia's Cusiana and Cupiagua fields, including a 500-mile pipeline to the Caribbean, produce more than 175,000 barrels a day for a BP partnership that also includes Total
Finally, BP, which owns 65% of the blown-out well, is dunning its partners -- Anadarko
BP may have singlehandedly set offshore drilling back eons. Until things begin to settle down, my advice is to err toward conservatism, but certainly not abandonment, in the sector.