BP says Apache seeks arbitration on Canadian sale

LONDON: BP said Apache Corp has initiated arbitration proceedings over a price dispute concerning properties in Canada which it bought from BP last year as part of a $7 billion deal.

Apache started the process against BP Canada Energy on Feb. 9, alleging that some of the sites will have to have work carried out to comply with Alberta's environmental laws, BP said in its annual report on Thursday.

"Apache Canada Ltd claims that the purchase price should be adjusted for its estimated possible costs," BP said.

"BP Canada Energy denies such costs will arise or require any adjustment to the purchase price."

BP sold oil and gas properties in Texas, western Canada and Egypt to Apache for $7 billion last year as part of its effort to raise money to cover costs related to the Gulf of Mexico oil spill.

The process of selecting the arbitrator has begun and no hearing dates have been set, BP said.