Brian. I think you have it backwards. If any reshuffling is going to occur at BP, it’s going to be
1)Creating a BP USA and separating it from BP international…
2)Having BP international assume the very profitable international businesses with the nicest assets.
3)Sticking BP USA with the liabilities of the Gulf…
BP doesn’t really need to do anything creative with it’s reorg…Namely, because there are plenty of companies beforehand that can already provide them with a playbook, or two, or three.[/quote]
FLU: BP already has an American operation that is a complete standalone: BP North America. While it answers to BP London, it is a self-contained operating unit.
And before anyone gets overly pumped up about “a legally bankrupt entity”, it isn’t going to happen. What will probably happen is that BP will sell one of its components, either upstream or downstream. BP is what is known as a fully integrated oil company, meaning it does everything from extract to refine. If it does spin off an operation, it also won’t be going to a Chinese company, I can guarantee you that.
All of the big supermajors learned about containing liability after the Exxon Valdez spill. Using that as an example, ExxonMobil now breaks up all the different parts of the shipping operation, from the vessel to the fuel, and disperses the liability through various subsidiaries, leased operations, etc.
While BP was completely unprepared for dealing with the spill, their attorneys are fully prepared for the liability.