BP is considering relatively modest new bank lending lines and is not planning bonds sales or new increases in asset sales to fund its Gulf of Mexico oil spill clean-up, sources familiar with the company's thinking said on Monday.

BP has considered a number of different scenarios to raise additional cash, should the need arise, such as additional asset sales and a potential bond offering.

But for now, the company is confident its cash resources can cover the bulk of the clean-up costs, one source said.

It is not seeking to raise tens of billions of dollars in debt.

"Currently, the activity is around smaller numbers," the source said.

BP is seeking to arrange credit lines of up to $7 billion from banks, banking sources told Reuters last week.

Bankers said the rise in the price of BP credit derivatives, reflecting the cost of insuring BP debt, means bank debt would be much cheaper for BP than tapping the bond market.

BP last week agreed to establish a $20 billion fund to cover claims for damages suffered by those impacted by the Gulf of Mexico oil spill.

However, BP will only have to pay in $5 billion this year. It will also have to pay additionally for the effort to shut the blown out well and to clean up the shore line. BP estimates this will cost $3 billion-6 billion this year.

The estimated $8 billion to $11 billion costs this year will be met by BP's slashing of three dividend payments, which had been expected to amount to $8 billion, a $2 billion saving in capital investment this year, $10 billion in asset sales and operating cashflow.

BP expects to generate over $30 billion in cash this year, of which only $18 billion will be consumed by investment needs.