Mostly, this loss comes from the $40.9 billion BP has spent and set aside for the BP Oil Spill in the Gulf of Mexico.
Ever since the spill, BP has been scrambling for cash, selling interests around the world, including refineries in Texas, and interests in Latin America and Asia.
The kerfuffle with its Russian partners in TNK-BP is not helping matters much. As expected, BP’s partners blocked the dividend payout of $1.8 billion—$900 million of which was headed BP’s way. The reason the Russian oligarchs got pissed at BP was its joint venture with Russian government controlled Rosneft to explore the Arctic. But now that has been halted in its tracks: A lawsuit filed by BP’s TNK-BP partners is keeping BP from moving forward with Rosneft.
So no dividends from TNK-BP, and no joint venture for BP with Rosneft.
All in all, looks like BP is getting The Treatment—like this:
That picture surprised me (but I've been visiting this blog long enough, that I should have expected it).
ReplyDeleteI get a slight smile on my face when I hear of BP's troubles. (I know that sounds a bit perverse, but never-the-less the smile IS there.)
-Dave in MO