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Business

BP 'good value' says leading Libyan oil executive

Smoke rises from the BP oil spill site, as natural gas is burned off, while the drilling of two relief wells continue in the Gulf of Mexico
Image caption The Gulf of Mexico oil spill has also proved a disaster for BP's share price

A leading Libyan oil executive has said he will recommend that the country's sovereign wealth fund buys a stake in troubled oil giant BP.

Shokri Ghanem, chairman of Libya's National Oil Company, said BP shares were "good value for bargain hunters".

His comments follow reports on Monday that BP is seeking investment from Middle Eastern sovereign wealth funds.

BP shares have almost halved in value following the Gulf of Mexico oil disaster, which began in April.

"BP is interesting now, with the price lower by half and I still have trust in BP. I will recommend it to the Libyan Investment Authority," Mr Ghanem said.

Rising costs

There has been a great deal of speculation in recent days about potential investors in BP, including the Kuwaiti Investment Authority, China's PetroChina and the US oil giant Exxon Mobil.

Market Data - BBC News

Market Data

Share Prices

Markets

UK markets
UK markets % change Value
Change
+0.42%
7331.12
+30.89
+0.21%
20500.45
+42.18
Europe markets
Europe markets % change Value
Change
0.00%
543.07
+0.01
+0.56%
5393.74
+29.95
+0.50%
12219.02
+61.35
+0.30%
3368.56
+10.10
+0.41%
9486.30
+38.80
US markets
US markets % change Value
Change
+0.61%
26405.76
+158.80
-0.08%
7950.04
-6.07
+0.13%
2907.95
+3.64
Asia markets
Asia markets % change Value
Change
-0.45%
37121.22
-169.45
+1.19%
27407.37
+322.71
+1.08%
23672.52
+251.98
As of 21:44 19 Sep 2018

Currencies

GBP
% change One £ buys
Change
GBP against Euro
-0.08%
€1.1259
-0.0010
GBP against Yen
-0.12%
¥147.5750
-0.1700
GBP against USD
-0.05%
$1.3141
-0.0010
USD
% change One $ buys
Change
USD against Euro
-0.02%
€0.8568
0.0000
USD against GBP
+0.06%
£0.7610
0.0000
USD against Yen
-0.08%
¥112.2800
-0.0850
Euro
% change One € buys
Change
Euro against GBP
+0.08%
£0.8882
+0.0010
Euro against Yen
-0.02%
¥131.0850
-0.0300
Euro against USD
+0.05%
$1.1674
+0.0010
Yen
% change One ¥ buys
Change
Yen against Euro
+0.02%
€0.0080
0.0000
Yen against GBP
+0.12%
£0.0070
0.0000
Yen against USD
+0.08%
$0.0090
0.0000
As of 21:48 19 Sep 2018

Commodities

Oil
Commodity % change dollars per barrel
Change
Brent Crude Oil Futures
+0.38%
79.33
+0.30
WTI Crude Oil Futures
+1.82%
71.12
+1.27
Gold
Commodity % change dollars per ounce
Change
Gold (Forex Index am fix)
0.00%
1199.40
0.00
Gold (Forex Index pm fix)
-0.14%
1200.20
-1.70
Natural Gas
Commodity % change dollars per million BTU
Change
Natural Gas (Henry Hub Futures)
-0.92%
2.91
-0.03
As of 21:44 19 Sep 2018

BP shares rose 3.4% in morning trading, having gained 3% on Monday after the reports of Middle East interest.

The firm has said that it welcomes new investors but has no plans to issue new shares.

The company is facing huge liabilities over the massive oil leak in the Gulf.

In its latest update, BP said the oil leak had now cost it $3.12bn (£2bn), though the total cost is forecast by analysts to be tens of billions of dollars.

Oil is continuing to leak into the Gulf of Mexico following the explosion on the Deepwater Horizon oil rig in April.

BP said two relief wells being drilled to stop the leak are on course for completion by August.

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