There is something of a clean up (if you’ll forgive the pun) going on at BP.
Yesterday the company sold $3.5bn worth of bonds, with demand high and the 5-year tranche being priced at a respectable (if sector-lagging) 195 bps over US Treasuries. The renewed confidence from the credit markets has helped the cost of default protection on its debt fall to 191bps from a high of 614bps in June.
Then today, Robert Dudley made his first personnel change before becoming CEO on Friday, putting Mark Bly, the UK head of safety, in charge of a new souped-up safety and risk division, and announcing plans to split the exploration business into three. The company said that change would lead to the departure of Andy Inglis, the head of exploration, by the end of the year.