Thursday, June 17, 2010

GIC loses S$1.3b on BP Investment since Apr 20th, following Deepwater Horizon Disaster

GIC is one of BP's largest shareholders, holding more than a 1% stake in the company's shares.

On Apr 20, when the Deepwater Horizon oil rig exploded and sunk, GIC's stake was worth about US$1.9b. Since then, BP's share price has plummeted and GIC's stake is now worth about US$1b. This is a loss of about US$900b or S$1.3b of market value since the disaster began.

The Disaster was an unexpected by the oil industry, but in hindsight should have been avoided.

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