El Paso, Kinder Morgan up on private-equity report

An earlier version of this article contained an incorrect percentage figure for Nexen�s stake in the Usan field in Nigeria.

NEW YORK (MarketWatch) � Shares of El Paso Corp. and Kinder Morgan Inc. moved up Friday on reports that a private-equity firm�s nearing a $7 billion acquisition of the oil and gas exploration unit of El Paso.

Lending support to energy stocks, oil prices continued to move up to their highest levels since last April. During the session, crude futures gained 0.9% to $108.78 a barrel. See: Oil tops $109 on Iran supply fears.

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Tracking the action at the closing bell, the NYSE Arca Oil Index XX:XOI �ticked up 0.1%, while the NYSE Arca Natural Gas Index XX:XNG �moved up by 0.3%. The the Philadelphia Oil Service Index OSX �ended lower by 0.3%.

Energy stocks in the S&P 500 SPX �rose 0.2%, on average. Among the upside movers, Alpha Natural Resources ANR �rose 3.2%, Chesapeake Energy Corp. CHK � rose 1.9% and Nabors Industries NBR �advanced by 1.4%.

On the down side, Valero Energy Corp. VLO �fell 5.5% and First Solar FSLR �declined 4.4%.

The Wall Street Journal reported late Thursday that an acquisition deal involving private-equity firm Apollo Global Management may soon take place as part of a plan by Kinder Morgan Inc. KMI �to finance its $21.1 billion purchase of El Paso .

Shares of El Paso Corp. rose 1.5% as Kinder Morgan advanced by 2.9%.

Meanwhile, shares of BP PLC BP �fell 0.6%, ahead of the start of a scheduled civil trial on liabilities surrounding the April 2010 Macondo well accident that killed 11 workers and triggered the worst maritime oil spill in U.S. history.

Analysts at Tudor Pickering Holt estimated a settlement could cost BP an additional $11 billion, along with about $26 billion in payments thus far.

Also on the legal front, former Halliburton HAL �executive Albert Stanley drew a 2 1/2-year prison sentence after pleading guilty to federal charges of paying $180 million in bribes to Nigerian officials between 1995 and 2004, according to reports.

Stanley, who ran former Halliburton unit KBR at the time, said �ambition, ego and alcohol� drove him to make the illegal payments in exchange for big construction contracts, according to a Wall Street Journal report.

France�s Total starts up big Nigerian field

Total SA TOT �FR:FP �said Friday it began oil production from the Usan field about 62 miles off the coast of Nigeria in 2,800 feet of water, after an initial discovery in 2002.

A floating production platform at Usan has a capacity of 180,000 barrels a day, Total said. Development plans for Usan include 42 wells connected to the floating production vessel by a subsea network.