BP expects higher costs for oil spill

Jul 14th, 2010

commentary pen


By Hassan MohammadZaman
Mid East correspondent for crwenewswire.com

BP share price has shown considerable positive change in the last trading sessions after weeks of bearish movements due to the disastrous gulf oil spill. The oil company announced on Monday that it would take around $3.5 billion to deal with oil spill in Gulf of Mexico.

According to company almost $165 million have been paid in for individual settlement claims, up to now BP has made almost 52,000 payments on 105,000 claims.

The company thinks that the total cost and compensation cannot be estimated at this time, since there are still a large number of claims and expenses yet to be submitted.

The company share price has turned bullish on the rumor that BP plans to sell some of the assets.

According to Sunday Times in London, BP is in negotiations with Apache Corp to sell a stake in its drilling property in Alaska Prudhoe Bay field for $18 billion. It is also reported by the same newspaper that ExxonMobil contacted US government representatives to see if the could object to takeover bid for BP.

BP is also going to announce its second quarter financial results on July 27th 2010 which will be scrutinized closely by traders and analysts.

Some believe that the second quarter results will not be so significantly different as dividends are already cancelled due to pressure from the US government.

The Views and Opinions Expressed by the author are his or her opinions only and do not necessarily reflect those of this Web-Site or its agents, affiliates, officers, directors, staff, or contractors. The author at the time of this article did not own any shares or receive any consideration financial or otherwise from any company or person mentioned or referred to in the article.


Category: Business News, World News

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