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The collapse of BPs latest asset sale has thrown the spotlight of investor pressure back on Dudley

November 10/2011

(Arabian oil and gas) -- BP CEO Bob Dudley will be feeling the pressure as divestment program vital to easing shareholder pressure goes off the rails. The collapse of BPs latest asset sale has thrown the spotlight of investor pressure back on CEO Bob Dudley, as the company continues to lag behind its supermajor rivals in share performance.


Dudley, who declared that BP had reached a turning point after the Macondo disaster on the release of the firms Q3 results last month, may have to re-think its plan to raise its dividend after the $7 billion sale of its Argentinean unit and followed a failed $16 billion share swap agreement with Rosneft for deepwater arctic exploration in Russia.


Fitch, a ratings agency, said: "We believe that if the company's cash position were to become more constrained in the short term, the company's most likely first response would be to postpone any increase in its dividend payments."


BP had hoped to sell its Pan American Energy unit to Bridas, which is 50% owned by Chinas CNOOC, as part of a divestment program aimed at footing the bill for the Macondo disaster, which it is estimated will cost the firm $40 billion.


Only last month the company announced it was stepping up its divestment program from $30 billion to $45 billion, having confirmed that $26 billion have been raised so far. The reason for the collapsed sale is unclear, with BP leaving little clue save for legal reasons and Bridas citing regulatory and legal concerns and the way BP handled the transaction.


Perspectives of development of polymer markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit will be organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers" presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.


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