BP to sell stake in Pan American Energy to pay for oil spill.

 Continuing its plan to rid itself of $30bn by 2011, BP has sold its 60% stake in Pan American Energy (PAE) for $7bn. In selling its shares in the Argentine oil company, BP will have raised more than $20bn since July. The oil spill crisis is estimated to cost the company $40bn in total.

BP chief executive said the sale showed BP was strong enough for the company to continue despite its large liabilities.

He said: “This agreement further demonstrates both the high quality and attractiveness of the assets throughout BP’s global portfolio and also the company’s ability to meet our significant financial commitments arising from the Gulf of Mexico tragedy.

“We now have agreements in place that should secure the majority of our divestment target. We will continue to identify further assets that may be strategically more valuable to others than to BP as we complete the programme.”