BP to cut capex, sell assets for $20bn payout

Team BP: chief executive Tony Hayward and chairman Carl-Henrik Svanberg walk into a meeting at the White House.

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By Noah Brenner & Anthony Guegel

 16 June 2010 18:45 GMT

BP will slash its capital spending budget, sell $10 billion in assets and drop its dividend to pay for a $20 billion spill response fund.



US President Barack Obama announced the creation of the account Wednesday after meeting with top BP officials, including BP chairman Carl-Henrik Svanberg and chief executive Tony Hayward.

BP said it will pay $3 billion in third quarter this year and $2 billion in fourth quarter into the fund followed by a payment of $1.25 billion per quarter until it reaches $20 billion.

In the interim, BP must post US assets worth $20 billion as bond.

The total is not a cap on liabilities and BP said Wednesday that the response has cost…

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