The much awaited deal between the BP and CNOOC Ltd and Bridas has got cancelled due to the failure in transaction.
BP wanted to sell its stake in Pan American Energy, as they needed urgent funds to pay for the cleanup of its Gulf of Mexico oil spill. But that was way back in 2010 and now the BP’s Chief Executive, Bob Dudley, said that they would not repent if this deal gets cancel as torment phase has got over.
CNOOC Ltd, China’s biggest offshore oil producer and Bridas, 40% stake holder of PAE have blamed BP for collapse of the deal. They affirmed that there were some legal hassles in the deal and moreover, BP did not handle transaction in an appropriate manner which resulted cancellation of the deal.
It seems malign act has started as Dudley was of the view that to get Argentine anti-trust and Chinese regulatory approvals was the sole responsibility of Bridas and they were unable to get those permission, so their deal did not turn out to be successful.
Bridas is in no mood to take burden of failure on its head and affirmed that approval is not the reason as the Chinese and Argentine governments were in complete support for the deal.
BP is in not ready to strike peaceful chord with Bridas and affirmed that they would make some strategies in regard to PAE, but on the other hand, Bridas is still ready to negotiate with BP.
Experts were of the view that cancellation of the deal would surely affect profits of BP, which would publicize its annual turnover by the start of next year. But it is something, which is of little concern for BP.
Dudley said that tough time is over and they no more need to get into agreement, which would be more of divestment.