Economy

BP Plc puts quarter of global production up as collateral

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Economy
Written by Roberta Murray   
Thursday, 12 August 2010

Morning Business News, Thursday 12 August: BP Plc, Dana Petroleum, Five Tv, Minerva, ROK Plc and oil prices.

 

BP Plc (LON:BP) will use its US production revenues as collateral to guarantee the $20bn compensation fund for victims of the Gulf of Mexico oil spill.

US production revenue accounts for about a quarter of annual output reports the Financial Times.

The Times adds that BP’s controversial plans to start deepwater drilling off the coast of Libya have been delayed amid American attacks on BP for its alleged role in the release in 2009 of Abdul Baset Ali al-Megrahi, the Lockerbie bomber.

Dana under takeover pressure


Staying with the oil industry, an arm of the South Korean Government is edging closer to clinching a £1.7 billion takeover of Dana Petroleum, Britain’s largest independent North Sea oil producer.

Dana’s board is expected to give a formal response to a detailed offer from Korea National Oil Corporation this week, people close to the discussions said. Dana is expected to agree to open its books, paving the way for formal due diligence to begin and for a deal to be announced this month, writes the Times.

Five job losses


Richard Desmond’s TV adventure turned ugly yesterday as a quarter of the staff at Five lost their jobs and the channel’s chief executive stepped down. Mr Desmond, who owns OK! magazine and the Daily Express, bought Five last month for £103.5 million, reports the Times.

Minerva in emergency shareholder meeting


Minerva called an emergency shareholder meeting yesterday as it tried to stave off efforts by its biggest investor to oust the chief executive and chairman. It said the challenge was a smokescreen concealing an attempt to gain control of the property group, according to the Independent.

ROK Plc looks to bounce back


The City hammered Rok shares yesterday after the company suspended its finance director over a £6 million accounting shortfall. The share price more than halved at one stage as the property repair and maintenance company admitted to “serious failings in financial controls”, says the Times.

Oil prices fall


Oil prices fell on Wednesday after the International Energy Agency (IEA) warned of risks to demand as it predicted a slowdown in the global recovery, writes the Telegraph.

 
 
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