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Friday 22nd of May 2015

BP hopes sealing cap will stop oil leak

Story link: BP hopes sealing cap will stop oil leak by Kay Murchie
BP hopes sealing cap will stop oil leak

Oil giant BP is hopeful that a new sealing cap will stop oil leaking into the Gulf of Mexico, although it warned the cap had never been deployed at such depths or under such conditions.

The old cap, which it replaces, only managed to contain about half the oil escaping from the damaged well so BP will be hoping this proves successful, as it continues to be under immense pressure to stop the leak.

However, it added that the two relief wells being drilled remain the only way to permanently to seal the leak.

Meanwhile, Admiral Thad Allen, the official in charge of the response to the spill, yesterday said “significant progress” had been made but the company will conduct tests to determine the integrity of the leaking well today.

In a statement, Admiral Allen said: “The measurements that will be taken during this test will provide valuable information about the condition of the well below the sea level and help determine whether or not it is possible to shut the well for a period of time.”

Yesterday, the oil giant said total clean-up costs relating to the 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.

Meanwhile, Bloomberg has today reported that Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed al-Nahayan is considering an investment in the oil giant.

This report comes after BP’s chief executive, Tony Hayward, met with an Abu Dhabi state investment fund as sources said the company is seeking investment from Middle East sovereign wealth funds to help it address its soaring clean-up costs.

Seeking investment comes as BP tries to fight off a takeover. The oil giant has become increasingly vulnerable to a takeover following the slump in its share price.

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


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