China’s CNOOC scraps BP stake deal

7 November 2011: Bridas Energy Holdings, a 50 percent owned unit of China’s biggest offshore oil producer CNOOC Ltd has terminated a deal to buy BP’s stake in Argentina-based oil and gas group Pan American Energy Llc (PAE).

However, the failure of the sale of its 60 percent interest in PAE could mean cashflow is lower than might have been expected, making it harder to raise the dividend. The deal, which was initially signed last November was not as important to the firm’s cashflow today as it was a year ago. Through the stake sale, BP has planned to help raise funds to pay for the cleanup of its Gulf of Mexico oil spill in 2010.

Source: Livemint