BP Share News (BP.)

(Updates with context and further details) By Taos Turner Of DOW JONES NEWSWIRES BUENOS AIRES (Dow Jones)--U.K. oil giant BP PLC (BP, BP.LN) has decided to sell its stake in Argentine unit Pan American Energy and is in talks with Argentina's Bridas Corp., a person familiar with the negotiations said Thursday. Reports have put the value of BP's 60% stake at around $9 billion and that is what BP is seeking, the person said, noting that Bridas is offering $6.5 billion. Bridas already owns the other 40% of Pan American and can wield considerable influence over the sale process. BP has been selling assets to raise cash to cover costs related to its massive oil spill in the Gulf of Mexico. Earlier this week BP agreed to sell oil and gas assets in North America and Egypt to Apache Corp. (APA) for $7 billion, and the company is also considering asset sales elsewhere. BP, which has already spent about $4 billion on the oil spill and has agreed to pay $20 billion into a cleanup and compensation fund, also faces the threat of fines and costs associated with litigation. BP has canceled its dividend and said it will sell $10 billion in assets, though the effort to sell Pan American indicates the company seeks considerably more. "BP doesn't know how much cash it will need for what's left of 2010 and 2011," the person said. The person, who asked to remain anonymous given the ongoing nature of the talks, said the sale of Pan American could occur within the next two or three months. BP Press Officer David Nicholas said from London that the company wouldn't comment on any plans that it may or may not have to divest in Argentina. "That's speculation," Nicholas said. "We don't comment on rumors. If and when we have announcements to make, we make them. We've informed governments in Pakistan and Vietnam that we're looking to divest in downstream assets there," he said. Bridas couldn't be immediately reached for comment. China National Offshore Oil Corporation Ltd., or Cnooc (CEO, 0883.HK) agreed in March to buy a 50% stake in Bridas from Argentina's Bulgheroni family. As BP's existing partner in Pan American, Bridas has considerable say over who gets to buy BP's shares in the event of a sale. If Bridas's offer under the first-refusal option isn't acceptable, BP would then draw up a short list of potential buyers and submit it to Bridas, which could veto up to 50% of the companies on the list, according to the person. Moreover, if BP wanted to accept an offer from one of the remaining companies on the list, it would still have to give Bridas an opportunity to match the offer. -By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com (END) Dow Jones Newswires July 22, 2010 17:58 ET (21:58 GMT)