Several media have reported that BP (BP) will increase its target for asset sales to as high as $40 billion. This almost certainly mean disposing of its aging oil field holdings in Prudhoe Bay, Alaska, which may be worth as much as $20 billion. The U.K.-based company may also sell its share in a joint venture in Russia's TNK-BP to its partner there.

Apache (APA) may be an acquirer of BP's Prudhoe Bay or Egyptian assets, which could be worth as much as $7 billion according to the Financial Times.

The news is probably not a terribly good sign for the oil company. It has already spent $8 billion on cleaning up its Deepwater Horizon oil spill in the Gulf, and has to pay $20 billion into an escrow fund to cover future liabilities.

BP's shares have recovered from their 52-week low of $26.75 to $37.43 as of Sept. 3's close in New York trading.