BP Shares Rise on the Back of Bad News

Macondo Oil Well Disaster

BP Shares Rise on the Back of Bad News

Even with the latest reports from British Petroleum stating costs from the Macondo Oil Well Disaster have risen, shares in the company (BP.L) rose 0.6 per cent to 394¾p in early morning trading in London on Friday.

The Gulf of Mexico oil spill clean-up and response expenses have escalated by almost $2bn over the past month alone, to around $8bn.

So far from this huge amount $399 million has been paid out in claims to people affected by the spill. The responsibility of looking after and handling all claims has now been passed on to the Gulf Coast Claims Facility.

The GCCF has so far dispensed $35.5 million in claims to needy locals affected by the environmental disaster.

The well itself is now being permanently sealed, while the relief well drilling continues on unabated. The relief well is on target for a completion date around the middle of September.

British Petroleum which is still under US regulatory scrutiny has stated that they will publish the results of their own investigation into the disaster within the next fortnight.

The energy company is still under the commitment to pay $20 billion into an escrow fund so as to be able to cover all claims and any future unforeseen expenses.

No more oil has leaked out of the damaged well since the new cap was installed. A new blow-out preventer is now being fitted to the pipeline.

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Posted by on Sep 3 2010. Filed under Business, Featured News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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