Exact(16)
BP is also negotiating with potential buyers to sell off producing assets in Vietnam, Pakistan and Argentina.
But investment spending is special: it often pays for itself by producing assets such as roads or research labs which contribute to productivity and growth.
"Our investors are acquiring a strong existing business with excellent producing assets, a fine team of technical and operating staff already in place, and immense potential for future growth," Mr. Hayward said in a statement on Wednesday.
The exploration group, which currently has no producing assets, has jumped nearly 9% or 13.7p to 171.6p after it announced a second oil discovery off the coast of Senegal.
Secondly, we feel it no longer provides a good strategic fit for a potential acquirer: while its large gas asset in Tanzania could be of interest to an 'oil major'-type acquirer, we believe the medium size gas project in Equatorial Guinea is more likely to be of an interest to only a 'mid major' and the ex-Salamander, relatively small oil producing assets do not fit in a major company portfolio.
"Worldwide, any producing assets are fully priced," says Ambani.
Similar(44)
A further monetary boost may help add zip to the recovery, but risks producing asset bubbles.
KMP is the main cash producing asset for KMI and already receives generous distributions from KMP.
The results suggest that with mandatory rotation auditors adopt less cooperative negotiation strategies, producing asset values that are more in line with the auditor's preferences than with the client's preferences and more negotiation impasses.
But spending on newly produced assets now amounts to only about 70% of fixed-asset investment, says M.K. Tang of Goldman Sachs.
My conclusion was that banks and other intermediaries can only produce assets that are genuinely safe if the nominal value of those assets is guaranteed by a government with its own currency, like American bank deposits below a certain threshold.
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