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Friday 22nd of May 2015

Clean-up costs continue to soar at BP

Story link: Clean-up costs continue to soar at BP by Kay Murchie
Clean-up costs continue to soar at BP

BP has announced its total clean-up costs, relating to the Gulf of Mexico oil disaster, have hit $3.5 billion (£2.3 billion) – up from $3.12 billion last week.

The disaster happened after an explosion on a BP oil rig on 20 April, which took the lives of 11 people. The explosion led to thousands of barrels of oil leaking from the damaged well.

The oil company has been battling to contain the leak ever since.

BP’s shares have plunged more than 50% since the incident and there has been speculation that the oil giant may have to seek extra funds to pay for costs relating to the disaster.

However, the oil giant highlighted that the installation of a new sealing cap is “proceeding as planned”.

Last week, BP’s chief executive, Tony Hayward, met with an Abu Dhabi state investment fund, after it emerged that the company is seeking investment from Middle East sovereign wealth funds to help it address its soaring clean-up costs.

The oil giant has become increasingly vulnerable to a takeover following the slump in its share price.

There is speculation that the world’s largest oil firm, ExxonMobil, could bid for the British company.

Over the weekend, reports emerged that the Obama administration had told ExxonMobil it would give it the green light for a takeover of the crisis-torn company.


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