BP is less likely to be acquired following its $18.7 billion settlement over the 2010 Macondo oil spill, Chief Executive Officer Bob Dudley said on July 28.
The has been much speculation in recent months that the British oil and gas giant could become an acquisition target for a larger rival, leading the British government to warn it would oppose any takeover bid.
While some analysts expected BP to be even more attractive following its settlement with the U.S. authorities this month to resolve most claims from the Gulf of Mexico oil spill, Dudley sought to quell any speculation.
"As a result of the settlement in the U.S. it is actually less likely that someone would want to acquire BP and it is certainly not our intention to put the company up for sale," Dudley told reporters.
Merger and acquisition activity in the energy sector has been rekindled as company valuations slumped along with oil prices, highlighted by Royal Dutch Shell's $70 billion bid to acquire BG Group earlier this year.
BP shares are still some 35 percent below their value before the 2010 Macondo rig explosion and spill that killed 11 workers. The company's second-quarter profit slumped by nearly two thirds from a year ago as it took a huge $10.8 billion charge related to the settlement.
Recommended Reading
Ohio Utica’s Ascent Resources Credit Rep Rises on Production, Cash Flow
2024-04-23 - Ascent Resources received a positive outlook from Fitch Ratings as the company has grown into Ohio’s No. 1 gas and No. 2 Utica oil producer, according to state data.
US Drillers Cut Oil, Gas Rigs for Fourth Week in a Row-Baker Hughes
2024-04-12 - The oil and gas rig count, an early indicator of future output, fell by three to 617 in the week to April 12, the lowest since November.
To Dawson: EOG, SM Energy, More Aim to Push Midland Heat Map North
2024-02-22 - SM Energy joined Birch Operations, EOG Resources and Callon Petroleum in applying the newest D&C intel to areas north of Midland and Martin counties.
US NatGas Output to Decline in 2024, While Demand Rises to Record High, EIA Says
2024-04-09 - The EIA projected dry gas production will ease in 2024 as several producers reduce drilling activities.
US Gas Rig Count Falls to Lowest Since January 2022
2024-03-22 - The combined oil and gas rig count, an early indicator of future output, fell by five to 624 in the week to March 22.