BP PLC (LON:BP), which was earlier called British Petroleum, has been very busy off late, entering into a string of deals that will help the business grow fast. That’s a big change for the London-based oil and gas company, as they have been retrenching and trying to cut costs for the last six years ever since the Deepwater Horizon disaster, which came as quite a big shock.
Recent Purchases and Deals of BP PLC
On Monday, BP announced a deal with Kosmos Energy of Dallas for an investment of close to $1 billion that will help them develop a huge natural field in the African coast. Earlier on Saturday, the business had announced a bigger $2.2 billion deal for a 10 percent stake in the United Arab Emirates oil fields. BP has also purchased a stake in the huge Zohr gas field, just off the shore in Egypt and also expanded their interest in the Tangguh natural gas project in Indonesia. The business has purchased a couple of blocks in the North Sea and poured $9 billion in the Gulf of Mexico.
In another separate development, Abu Dhabi has emerged as the biggest shareholder of BP. the business has purchased a 10 percent share in ADCO, giving them a foothold in the oil output of Emirates.
In 2010, a well in the Gulf of Mexico blew off killing 11 people. It was a huge disaster for the business as they had to cut down and pay for the environmental disaster the incident caused. BP had to sell off $50 billion worth of assets so that they could pay for the legal and cleanup costs. The eventual costs were even higher – $60 billion.
This was followed by the global oil prices coming down sharply, which made it worse for the company. BP’s daily oil production, as a result, shrank to 3.3 million barrels from the 4 million of 2009. Now finally, it seems that the business has put these days behind them, and is ready to think big again.
BP Ready to Grow Again
Bob Dudley, the BP (LON:BP) Chief Executive had earlier said in July they are ready for “a new phase of growth”. A spokesman of the company said these deals shows that we are in tune with our long-term growth strategy.
The Managing Director of Oppenheimer & Co, Fadel Gheit, said while commenting on BP’s recent investment spree, “They are on the other side of the mountain now. They were in a steep climb to survive. That is now behind them”.