* Shares worth a third of value before Gulf disaster
* Oil firm settled criminal charges last week
* BP will gain $12 billion cash from Rosneft deal
LONDON, Nov 18 (Reuters) – BP Plc plans to spend up
to 3.7 billion pounds ($5.9 billion) buying back its shares
after agreeing last week to pay record criminal penalties over
the Deepwater Horizon disaster, Britain’s Sunday Times said in
an unsourced report.
BP said on Thursday it would pay $4.5 billion to resolve
criminal and civil charges over the April 2010 rig explosion in
the Gulf of Mexico that killed 11 workers and caused the
worst-ever U.S. offshore oil spill.
The settlement means BP will face no further U.S. federal
criminal charges, but is expected to have to pay more to settle
civil actions.
It could face a penalty of as much as $21 billion if found
guilty of gross negligence under U.S. clean water legislation in
a trial starting in February, although the firm has earmarked
only $3.5 billion for the case.
But the British oil company believes it could safely spend
up to 3.7 billion pounds to revive its flagging shares, which
are worth around a third less than before the disaster, the
Sunday Times said, adding the buyback could take place early
next year.
A BP spokesman declined to comment on the report.
BP will gain $12.3 billion in cash from an agreement in
October to sell its stake in TNK-BP to Russia’s Rosneft
, giving it headroom to return money to investors,
although analysts have said that may have to wait until its oil
spill litigation is settled.
At the time of the Rosneft deal, BP said it would evaluate
how the cash proceeds would be used, promising to offset any
consequent dilution to its earnings per share and to continue
with its “progressive dividend policy.”
