Here is update on BP’s asset sell-off to help cover its cost for the Gulf Oil Spill. Not suprising that most of the California assets are ARCO assets it acquired in 2000 and are Downstream in nature.
Not many majors will be willing to sign up for assets subject to Calfornia’s over-regulation, anti-oil and anti-trust issues. A lot of the existing long term local station supply contracts are expected to remain but I do not think they can keep prices as low given that BP represented 20% California market and the next owner will not.
Regards
