Wednesday, July 14, 2010

Abu Dhabi Considering Investing in BP (NYSE:BP)

After a meeting between BP (NYSE:BP) CEO Tony Hayward and crown prince of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan, the prince, who is on the board of the country's sovereign wealth fund, said they are still taking into consideration acquiring a piece of BP.

If Abu Dhabi, or another significant Middle East player invests in BP, it would be a nod toward the belief they're going to survive the challenge of the Gulf oil spill, and would be considered a buy at current share price.

Even though there have been much lower entry points, as BP shares have risen about 27 percent since the beginning of July, the closer they get to capping the well, the better investors will be able to more accurately project the future of the company, along with a suitable price for shares.

If BP is able to make the new containment cap work, it will be a giant step toward generating more investment, and the soon implementation of plugging the oil with a relief well over the next several weeks puts them in an even better position.

Another country asserting interest in investing in BP has been Libya.

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