• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 5 hours WTI @ $75.75, headed for $64 - 67
  • 2 hours Censorship has a price: Google’s CEO Defends Potential Return to China
  • 3 hours Gold price on a rise...
  • 4 hours Saudis Threaten Retaliation If Sanctions are Imposed
  • 3 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 2 hours $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 17 mins Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 30 mins Can the World Survive without Saudi Oil?
  • 11 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 32 mins UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 4 hours Who's Ready For The Next Contest?
  • 10 mins Saudi Crown Prince to Trump: We've Replaced All Iran's Lost Oil
  • 32 mins Mexico State Oil
Alt Text

OPEC Accused Of Hiding Spare Capacity

The U.S. State Department has…

Alt Text

EIA Inventory Count Accelerates Oil Price Slide

Oil prices continued to slide…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

UK Govt To Oppose Any Moves On BP

UK Govt To Oppose Any Moves On BP

The U.K. government wants BP to still stand for “British Petroleum.”

The Financial Times reported that Downing Street would do all it could to block a takeover of BP. Weakened and shrunken down due to the massive, and still rising, toll stemming from the Deepwater Horizon disaster, BP could become a takeover target from one of the larger oil majors out there. Related: How Much Does OPEC Really Earn?

Rumors have been swirling in recent weeks that perhaps ExxonMobil or Chevron could be eyeing the British oil giant, so much so that BP’s CEO Bob Dudley had to publicly dispel any notion that his company is for sale. BP has also reportedly been war-gaming different takeover scenarios, planning on how they could fend off ExxonMobil or Chevron.

Now, fearing the same possibility, the British government wants to scare away buyers as well. The FT reported on April 26 that “Downing Street has informed BP and senior City figures that it wants the group to remain a British industrial champion with global reach.” Related: Former BP Chief Sees Oil Price Rebound Soon

Not only that, but the British government wouldn’t even support a takeover by Royal Dutch Shell, a company with deep British roots. That is because it wants two big global companies that hail from the U.K.

BP has had a long history under the purview of the British government. Since the early days when William Knox D’Arcy started drilling for oil in Iran, on through World War I when the British navy started fueling its fleet with oil, up to the 1970’s when the North Sea became a major source of oil production, BP has played an enormous role in projecting British power throughout much of the 20th century. Related: Big Hit For U.S. Oil Production In January

The British government wants that to continue. But in reality, BP is a private company and is no longer owned by the British government. As such, the government would have few tools, if any, to block a merger or takeover. Admitting as much, a government official told the FT that boisterous opposition to a deal from the government, even if it wasn’t backed up with any teeth, could be enough to keep the wolves at bay.

That remains to be seen. A bigger deterrent probably comes from the untold damage done from the Deepwater Horizon disaster as well as BP’s heavy exposure to Russia, where its assets face uncertain vulnerability to western sanctions. But if ExxonMobil really wants BP, it has the financial firepower to swallow BP and take on those problems.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News