Exxon sounds out US over BP

11th Jul 2010 16:15

US oil giant Exxon has started to clear the political hurdles ahead of a possible bid for BP, reports today suggested.There is no indication yet that Exxon intends to make a move, but the US firm has sounded out the Obama administration and been told the US government would not stand in the way if it did go ahead.Another US firm, said to be Chevron, has also been told the US authorities would give their approval. "There have been talks at a high level, and Exxon has expressed a serious interest. It is too early to talk about a bid yet, but they are clearing the way," the Sunday Times reported citing an unnamed source.A successful bid by Exxon for BP would create an oil company worth more than $400bn (£265bn).BP shares have rallied over the past week on reports it is closer to capping the Gulf of Mexico well that has been leaking since April.It is also said to be is in exclusive talks to sell up to $12bn of assets to US firm Apache, including a stake in the huge Prudhoe Bay field in Alaska.Apache approached BP with the plan a few weeks ago. Discussions are under way over the structure of the agreement and if other assets could be included. BP wants to raise $10bn from asset sales to help meet the cost of potential compensation and litigation from the oil leak.BP is also in talks to sell its $9bn stake in Pan American Energy, an Argentinian oil producer.Some brokers estimate the Gulf disaster could cost $70bn. A relief well that will seal the well completely should be finished within the next few weeks.