LONDON: The prospect of up to $18bn in new fines for the 2010 Gulf of Mexico oil spill could encourage BP to sell off some of its Russian interests, which already look at risk of being dragged into a political standoff between Moscow and the West.
Shares in the British oil group dropped sharply on Thursday after a US judge ruled it was “grossly negligent” in the April 2010 rig explosion and spill that killed 11 workers.
A day later, many analysts said the fall was overdone, pointing out the level of fines may not be determined for years and that BP could probably afford to pay them without any major asset sales.
However, some said the bad news could prompt BP to look at reducing its exposure to Russia at a time when the West is imposing sanctions on Moscow for its support of separatists in Ukraine, and Russia is countering with its own restrictions. “I wouldn’t be surprised due to the ongoing crisis in Ukraine and Russia if BP would like to reduce its huge 19.75 percent stake in the BP-Rosneft joint venture to cut their risks there, even though it is profit making,” said Natixis analyst Abhishek Deshpande.
REUTERS
