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BP shares down as partner says will not share costs
BP shares are hit again by accusations from well partner Anadarko and talk the oil giant may have to issue new bonds to a market with little appetite for its debt.
Markets
BP shares fell another 5% in morning deals as its US partner in the Deepwater Horizon well in the Gulf of Mexico, Anadarko, accused BP of recklessness and said it would not help with costs.
Shares fell 17.45p, or 4.88%, to 340p.
Fears the group may struggle to raise money in the bond markets and from its banks, as well as yet another PR gaffe by chief executive Tony Hayward, also added to investor nervousness about the company’s prospects.
Anadarko's chairman and chief executive Jim Hackett said: 'The mounting evidence clearly demonstrates that this tragedy was preventable and the direct result of BP's reckless decisions and actions.'
He said he was shocked by mounting evidence that BP operated unsafely and failed to monitor and react to several critical warning signs during the drilling of the Macondo well.
He said: 'BP's behavior and actions likely represent gross negligence or willful misconduct and thus affect the obligations of the parties under the operating agreement.'
Hackett also said: 'We recognize that ultimately we have obligations under Federal law related to the oil spill, but will look to BP to continue to pay all legitimate claims as they have repeatedly stated that they will do.'
BP refuted the allegations in a statement to the stock exchange.
Hayward said: ‘Other parties besides BP may be responsible for costs and liabilities arising from the oil spill, and we expect those parties to live up to their obligations.’
He did say it is still unclear how the costs and liabilities are eventually allocated between various parties.
BP said costs for the spill, now the largest in US history, total around $2 billion so far.
Separately, the Sunday Times reported BP is looking to raise $10 billion from a bond auction next week as part of its plan to raise $50 billion to help pay for the clean-up and reassure investors about its cash position.
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7 comments so far. Why not have your say?
John C
Jun 21, 2010 at 13:58
Gordon Brown must have been American. He could never admit responsibility, he was wrong or apologise.
report thisJohn C
Jun 21, 2010 at 14:02
I forgot. Have all the pompous, holier than thou Congressional committee worked flat out for two months without a day off to try and solve the problem?
report thisAnonymous 1 needed this 'off the record'
Jun 21, 2010 at 14:21
Having read the US Congress letter to BP,
http://energycommerce.house.gov/documents/20100614/Hayward.BP.2010.6.14.pdf
one can see why the US is being so hard on BP. It begger's belief but the results of their actions are plain to see.
Anyone buying BP shares are in a crap shoot.
Best of luck
report thisAndrew - London
Jun 21, 2010 at 15:18
American's are such hypocrits. I'll bet that almost all the oil coming from this well was going to the US market and it is the same US market that is driving the demand to produce more oil - which of course needs to come from more dangerous sources as I believe that oil is running out!!!!
report thisRob Morrison
Jun 21, 2010 at 21:35
Isn't Tony Hayward due a day off, at least once a month, given the pressure he is under. I thimk he is right to do so.
Where is the UK Government in this issue???? Cameron, please say something!
report thisJ
Jun 22, 2010 at 08:45
Where is Cameron, where is Clegg and where is our new Government.
But alas BP have damaged its credebility.
report thisCP The Scot
Jun 25, 2010 at 16:27
HYPOCRISY AND US STANDARDS
• Union Carbide US Company exposed over 500,000 people to toxic gas in 1984 in Bhopal
• The Government confirmed death toll at Bhopal was 3,787 although other government agencies estimate 15,000 deaths.
• Another 100,000 to 200,000 people are estimated to have permanent injuries
• For reference 2,955 were killed in the 9/11 Attacks.
• 30 Safety issues had been highlighted 2 Years in advance at the Bhopal plant – these issues were fixed in the USA plant but not in the Indian plant
• Some 25 years after the gas leak, 390 tons of toxic chemicals abandoned at the UCIL plant continue to leak and pollute and affect thousands.
• UCC agreed to pay US$470 million (the insurance sum, plus interest) in a full and final settlement of its civil and criminal liability.
• The US Government blocked attempts to bring those responsible to account.
Conclusion
1)its ok for Americans to kill others particularly in the 3rd world,
2) Its ok for US Corporations to contaminate overseas,
3) The US will not expect its firms to be held accountable for inaction overseas…etc etc…………..
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