BP 'looking for share buyers' in the Middle East

UAE investment group Mubadala may be among those to offer financial "reassurance" to BP, it has been suggested.

BP's chief executive Tony Hayward has paid a visit to Abu Dhabi amid speculation the company is looking to cash-rich investment groups in the Middle East to buy its shares.

The Financial Times reported comments from "an official in the Gulf familiar with BP's discussions" who confirmed there have been ongoing talks between the company and investors in the region since the oil spill in the Gulf of Mexico.

According to the FT, while BP had said it can meet the cost of the spill without issuing new shares, it may be looking to sell non-core assets to help it meet its obligations and shore up the company against competitors and potential hostile takeover bids.

It suggested this could be a wise move given BP's strong relationship with the UAE which stretches back to the 1930s.

For example, Mubadala, a major investment group in the UAE with total assets of $24 billion (£16 billion) at the end of 2009, incorporates an oil and gas unit whose chief operating officer, Steve Peacock, is the former BP president for the Middle East and South Asia.

Mr Hayward's visit to Abu Dhabi follows recent trips by the chief executive to Russia and Azerbaijan as BP continues to look for reassurance from foreign partners.