In a move intended to help it cover costs related to the oil spill in the Gulf of Mexico, BP (BP) has agreed to sell its 60% stake in Pan American Energy in South America. BP will collect more than $7 billion over the next year and the sale will give joint-venture partner Bridas Group control of the company.

This deal is the most recent in a series of BP asset sales intended to raise funds to cover the estimated $40 billion cost of the Deepwater Horizon disaster. BP says it has spent more than $5 billion so far. The company is estimated to have shrunk by nearly a quarter since the oil spill began last spring.

The Financial Times reported on a U.S. investigation that claims that BP (BP) and Halliburton (HAL) knew that the cement used to seal the failed well was unstable.

The lawyers suing BP and Halliburton call this evidence a "game changer" and says it opens up the companies to penalties and court awards running into the billions of dollars.

The case rests on a finding by a U.S. federal panel that the cement used may have caused the fatal explosion on the Deepwater Horizon.

Halliburton (HAL) shares, closed up 0.5% Friday. On Thursday, shares sold off 8% after the National Commission said Halliburton cement at the BP's (BP) Deepwater Horizon well was unstable. Call option volume of 72K contracts compares to put volume of 69K contracts. November put option implied volatility is at 48, December and January is at 43; versus its 26-week average of 41 according to Track Data. Large option volume suggests traders positioning for larger price movement.

Intrepid Potash (IPI) closed up 4% as analysts raised their fertilizer price forecasts. November 37 calls and 40 calls are active with total call option volume of 9K contracts (2K puts). November option implied volatility is at 55, January is at 46; above its 26-week average of 44 according to Track Data. Large call volume suggests traders positioning for large price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

The U.S. Coast Guard and the Bureau of Ocean Energy Management Regulation and Enforcement are investigating events that occurred before the BP blast.

Workers who survived the blast have filed suit against Transocean Ltd. (RIG), the company that owned the rig. Michael Williams, a rig worker on the Deepwater Horizon, filed suit against Transocean in federal court in New Orleans, April 29. Williams identified several safety violations aboard the Deepwater Horizon.

BP (BP) shares opened up over 4%. The Wall Street Journal reported the oil giant is in talks with U.S. oil and gas company Apache (APA) and other companies over potential asset sales. The talks are part of the steps BP is taking as it is considering how to pay for the massive oil spill in the Gulf of Mexico.

The Sunday Times earlier reported that BP is in talks to sell up to $12 billion of assets to Apache. The WSJ said on Sunday a deal with Apache could be up to $10 billion and could include stakes in BP's Alaskan oil fields. The Times also mentioned that the Obama administration told Exxon Mobil (XOM) it wouldn't interfere with a bid.

After calls from a U.S. congressman for BP (BP) executives to commit hara-kiri and following President Obama's successful pressure on the company to set up a $20 billion escrow account, cancel $7.8 billion in dividend and sell $10 billion assets, a few analysts decided it couldn't get any worse and upgraded the oil giant shares to buy.

It's been nearly two months since BP's Deepwater Horizon rig exploded in the Gulf of Mexico, causing a massive oil spill -- that's still hasn't been resolved -- and the worst environmental disaster in U.S. history. Shares of the company were nearly halved as the cleanup cost estimates have swelled.

And as the agreements with Obama lifted some of the uncertainty, triggering a relief rally, some analysts also opted to upgrade BP shares.

JPMorgan Thursday morning rearranged its ratings on four oil service companies -- a reflection of the broker's shift toward large-cap oil firms and away from offshore drillers. While JPMorgan upgraded Baker Hughes (BHI) to overweight and Weatherford (WFT) to neutral, it cut Ensco (ESV) to neutral and reiterated Transocean (RIG) at neutral.

The brokerage's logic behind the BHI, WFT and ESV calls makes sense. But I am not too sure about the move on Transocean. Keeping in mind that Transocean is the owner of the Deepwater Horizon rig (leased to BP) that blew up and caused the massive oil spill in the Gulf of Mexico, JPMorgan believes that Wednesday's 8% drop in the stock was based on emotion, saying the stock is a "moving target."