BP plc (ADR)(NYSE:BP) trying to overcome oil spill scandal with new projects


Dallas, Texas 07/05/2013 (Financialstrend) – BP plc (ADR)(NYSE:BP) still remains under the shadow of the oil spill scandal that took place three years ago at the Gulf of Mexico. Litigations are pending and despite the company’s claim of settling most of the cases, more of them are still to come. This uncertainty is also reflected in the stock price, which ranged between $40 and $45 this year, closing at $41.18 on Tuesday. The share price contracts for the last 5 years, a fact that has given birth to speculation among analysts on what the next big trigger for the company could be. Most analysts do not expect the US court to declare a verdict that could break up the company but any ruling that helps to assess the degree of damage to a certain level could be the trigger the market is patiently waiting for.

One of the largest two projects of BP has been the development of oilfields in Brazil’s Santos basin, with the partnership of the state-owned Petrobas.However, BPrevealed the challenges it expects before the project could be deemed successful. The other large project of BP is in Australia, where it is developing a liquefied natural gas operation. For this purpose, the company has contractedDiamond Offshore Drilling Inc (NYSE:DO)to build an ultra deep water rig to be used off the Australian coast. Iraq is another country where BP is developing one of the largest oilfields in Rumaila. 150 new wells are expected to bedrilled by the end of this year.

The most remarkable move of BP is the sale of its 50% stake in TNK-BP to the Russian state-owned oil giant Rosneft. The company got $16.65 billion in cash and a 20% stake in Rosneft, expecting to explore Russia’s huge shale oil reserves besides increasing oil production with its advanced technology.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.