BP seeking to borrow $5 billion to help pay for Gulf oil spill

BP could be looking to borrow at least $5 billion to meet the financial requirements arising from the Gulf of Mexico oil spill. 

The oil giant, which agreed Wednesday to create a $20 billion fund to pay individuals and businesses for damages along the Gulf coast, is asking banks for one-year credit lines, according to a Bloomberg story. 

The transactions are being arranged individually and are in addition to BP's $10.5 billion in undrawn lines. The company had $27.7 billion in cash flow from operations in 2009. 

The $20 billion account requires BP to add money gradually over the next few years to cover claims made by those affected by the spill, which began April 20 after the Deepwater Horizon rig exploded and sank. 

The company also announced on Wednesday that it would forego its $10-billion-a-year dividend.