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By Sarah McFarlane
LONDON (Dow Jones) – Oil giant BP is in talks to sell its headquarters in London in an effort to reduce its debt amid the corona-driven drop in energy prices.
BP bought the office building in the London borough of Mayfair almost two decades ago from the Swedish telecom group Ericsson. At that time, the British group and its competitors enjoyed unrivaled stock market valuations in view of growing oil demand. In the meantime, the outlook has deteriorated dramatically.
The new coronavirus pandemic has caused the demand for crude oil to collapse massively. According to experts, it could take years for oil demand to return to pre-pandemic levels – if at all.
Insiders said BP hopes to raise approximately £ 250 million on the sale to Hong Kong-based investor Lifestyle International Holdings.
A BP spokesman said that when the sale is complete, the company will rent back the space where CEO Bernard Looney and the rest of the BP executive team are based.
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(END) Dow Jones Newswires
November 04, 2020 13:13 ET (18:13 GMT)