BP saw its shares hit a fresh post-spill low early Friday after the
beleaguered oil major said the cost of containing and cleaning-up its Macondo
spill in the Gulf of Mexico are continuing to accelerate.
In an update, BP said it has now spent some $2.35 billion as a result of
the world's biggest accidental oil spill, up from $2 billion on June 21.
The latest estimate puts BP's average daily spend in the last four days,
at $87.5 million, sharply higher than the $57 million/day average in the week
to June 21.
BP, which has agreed to pay $20 billion into a fund to meet costs and
claims from the disaster over the next four years, is paying for the spill
response on a daily basis including containment, relief well drilling, grants
to the Gulf states, claims paid, and federal costs.
Shares dropped by up to 7.3% to 301.55 pence in early London trade, the
lowest since the April 20 explosion on Transocean's Deepwater Horizon rig
which killed 11 crew and triggered the massive spill. BP's shares have now
lost half their value, or some $75 billion, since the Gulf spill.
BP's efforts to contain and clean up the spill are also facing pressure
by potential storms which could hamper clean-up efforts and make collecting
the crude more difficult.
The US National Hurricane Center said a tropical wave over the western
Caribbean could develop into a tropical depression over the next couple of
days as it moves towards the Gulf of Mexico.
RELIEF WELL NEARING TARGET
BP Friday also confirmed it had successfully re-attached the containment
cap on the top of the blown-out Macondo well, after pulling the cap earlier
Wednesday due to concerns that it was not working properly.
The company said that on June 23, a total of some 16,830 barrels of oil
were collected or burnt and 36,700 Mcf of gas were flared.
BP also said that its first relief well has now detected the leaking
Macondo well and that plugging may start in a "few weeks" after additional
tests and deeper drilling to pinpoint the location.
The relief well reached 16,275 feet on June 23 and "kill" operations on
the original well are expected to begin after a target intercept depth of
approximately 18,000 feet is reached, BP said.
Separately, BP chief Tony Hayward held meetings with workers at the oil
company's Canary Wharf office in London and its Sunbury campus Thursday, the
Financial Times reported, citing Hayward. BP's Canary Wharf office houses its
London-based oil and products trading operations.
He told staff that they "will see in a month from now that our operating
results are very strong," the newspaper reported Hayward as saying.
Meanwhile, preparations continue for the next step in containment
operations on the leaking well, BP said.
Preparation of the first floating riser containment system that will be
connected to the Helix Producer vessel remains on schedule. It is currently
anticipated that this system will be available to begin first operations at
the end of June or in early July, it said.
Plans also are being developed for additional containment capacity and
flexibility. These projects are currently anticipated to begin operations
around mid-July, the company added.
beleaguered oil major said the cost of containing and cleaning-up its Macondo
spill in the Gulf of Mexico are continuing to accelerate.
In an update, BP said it has now spent some $2.35 billion as a result of
the world's biggest accidental oil spill, up from $2 billion on June 21.
The latest estimate puts BP's average daily spend in the last four days,
at $87.5 million, sharply higher than the $57 million/day average in the week
to June 21.
BP, which has agreed to pay $20 billion into a fund to meet costs and
claims from the disaster over the next four years, is paying for the spill
response on a daily basis including containment, relief well drilling, grants
to the Gulf states, claims paid, and federal costs.
Shares dropped by up to 7.3% to 301.55 pence in early London trade, the
lowest since the April 20 explosion on Transocean's Deepwater Horizon rig
which killed 11 crew and triggered the massive spill. BP's shares have now
lost half their value, or some $75 billion, since the Gulf spill.
BP's efforts to contain and clean up the spill are also facing pressure
by potential storms which could hamper clean-up efforts and make collecting
the crude more difficult.
The US National Hurricane Center said a tropical wave over the western
Caribbean could develop into a tropical depression over the next couple of
days as it moves towards the Gulf of Mexico.
RELIEF WELL NEARING TARGET
BP Friday also confirmed it had successfully re-attached the containment
cap on the top of the blown-out Macondo well, after pulling the cap earlier
Wednesday due to concerns that it was not working properly.
The company said that on June 23, a total of some 16,830 barrels of oil
were collected or burnt and 36,700 Mcf of gas were flared.
BP also said that its first relief well has now detected the leaking
Macondo well and that plugging may start in a "few weeks" after additional
tests and deeper drilling to pinpoint the location.
The relief well reached 16,275 feet on June 23 and "kill" operations on
the original well are expected to begin after a target intercept depth of
approximately 18,000 feet is reached, BP said.
Separately, BP chief Tony Hayward held meetings with workers at the oil
company's Canary Wharf office in London and its Sunbury campus Thursday, the
Financial Times reported, citing Hayward. BP's Canary Wharf office houses its
London-based oil and products trading operations.
He told staff that they "will see in a month from now that our operating
results are very strong," the newspaper reported Hayward as saying.
Meanwhile, preparations continue for the next step in containment
operations on the leaking well, BP said.
Preparation of the first floating riser containment system that will be
connected to the Helix Producer vessel remains on schedule. It is currently
anticipated that this system will be available to begin first operations at
the end of June or in early July, it said.
Plans also are being developed for additional containment capacity and
flexibility. These projects are currently anticipated to begin operations
around mid-July, the company added.
