BP Oil Spill Loan Inches Up To $9B As More Banks Join-Sources

By Carol Dean Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Oil company BP PLC's (BP) standby loan has inched up to around $9 billion as more banks join the group of lenders supporting the company against possible claims related to the oil spill in the Gulf of Mexico, a person familiar with the situation said Monday. Around eight or nine banks have agreed to lend around $1 billion each to BP on a bilateral basis, this person said. "BP is calling on its relationship banks to provide liquidity and more are likely to join the group," this person said. The standby loans provide the company with immediate access to liquidity to deal with the cost of the oil spill and meet its liabilities while BP considers longer-term funding options, the person said. The loans have a one-year maturity with a one-year extension option. Among options open to BP for raising cash is selling its 60% stake in Argentine oil company Pan American Energy to Cnooc Ltd. (0883.HK) as recently reported by Sky TV, and selling a stake in BP to a sovereign wealth fund. BP's stake in Pan American Energy is worth up to about GBP6 billion, and BP is confident of reaching a deal within weeks, Sky TV's business editor Mark Kleinman said. -By Carol Dean, Dow Jones Newswires; 44 20 7842 9306; carol.dean@dowjones.com (Tahani Karrar-Lewsley in Dubai contributed to this article) (END) Dow Jones Newswires July 05, 2010 10:42 ET (14:42 GMT)