BP's $7bn sale of Argentinian crude producer Pan American Energy to CNOOC may fall through.
BP Plc's plan to sell a 60% stake in Pan American Energy LLC to China National Offshore Oil Company CNOOC may be in jeopardy as it faces opposition from politicians and competition authorities, according to those close to the deal.
The deal, which would be China's largest energy acquisition this year, should have been completed by June 30th but is still awaiting Argentine government and regulatory approvals.
The source claimed that London-based BP is willing to let the deal collapse and continue to work as a partner in oil production with the South American energy company. However, no final decision has been made and BP “remains optimistic” that the approvals will be granted before the accord expires in November.
The sale is consistent with BP's pledge to divest up to $30bn of fields and sell more than $25bn in assets to shore up its balance sheet following last year's Gulf of Mexico spill.