• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 16 hours Once seen as fleeting, a new solar tech proves its lasting power
  • 5 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 8 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas

Breaking News:

Oil Should Stay In Triple Digits: Analyst

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Premium Content

Middle East Oil Producers Might Consider BP Investment – to Diversify

With BP poised to move on from the Gulf oil spill with a new chief executive, the beleaguered London-based company might look attractive to Middle East sovereign wealth funds after all.

It would be a parting legacy from outgoing CEO Tony Hayward if his efforts earlier this month to court the funds in Abu Dhabi and other oil-producing countries were to bear fruit.

It may seem counter-intuitive at first blush that funds set up to diversify assets for oil exporters would want to invest in a major oil company. But BP, originally known as British Petroleum, has made good on its motto of recent years to go “beyond petroleum” – and it could do the same for oil producers.

BP has energetically acquired assets in natural gas and renewable energy that could translate into useful technology transfer for the well-heeled sovereign funds.

As Victoria Barbary, a senior analyst at the Monitor advisory group, recently told Reuters: “SWFs over the last two years have been actively investing into technology transfer from an economic diversification point of view. From this perspective, BP actually have an attractive portfolio.”

Leaving the U.S. as persona non grata in the wake of the oil spill, Hayward embarked on a whirlwind tour at the beginning of July to court SWFs as shareholders, in large part to bolster the company’s defense against a takeover.

Among others, he met with Abu Dhabi’s crown prince, Mohammed bin Zayed al-Nahyan, urging him to have the emirate’s sovereign wealth fund, considered to be the largest in the world, acquire up to 10% of BP, according to news reports.

Libya reportedly was also considering an investment through its sovereign wealth fund, though Kuwait, which already owns BP stock, ruled out any further acquisition for the time being.

Along with its decision to replace Hayward as chief executive, the BP board this week also agreed to sell off $30 billion in company assets to offset its expenditures in connection with the oil spill. The sale, representing a good 10% of BP’s assets, would offer an opportunity for oil producers to acquire non-oil assets directly.

By. Darrell Delamaide for OilPrice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News