Home » NEWS » BP puts oil spill cost at $350M

BP puts oil spill cost at $350M

GULF OF MEXICO — BP PLC said today that the Gulf of Mexico oil spill has cost the company $350 million so far as it outlined renewed efforts to contain the leak.

BP said the tally included the cost of the immediate response, containment, relief well drilling, commitments to the Gulf Coast states, and settlements and federal costs.

The company did not speculate on the final bill, which most analysts expect to run into tens of billions of dollars.

BP shares slipped 0.5 percent to $8.26 after the report, bucking an upward trend across the rest of the London Stock Exchange.

The London-based company said that it was preparing a second, smaller containment box to lower over the main leak point at the Deepwater Horizon drilling rig after attempts to do the same with a larger box last week were foiled by icy slush.

BP said the smaller dome was designed to mitigate the formation of the “large hydrate volumes” that clogged the bigger dome.

However, it acknowledged that the maneuver, which is designed to siphon up to 85 percent of the leaking oil to a tanker at the surface, had never been done before in more than 5,000 feet of water. The blown-out well, which is gushing at least 200,000 gallons of crude each day, is a mile underwater.

BP added that further work on the well’s blow out preventer, the device that was supposed to shut off the flow of oil after a deadly April 20 oil rig explosion but failed, meant the company was in a position to attempt a “top kill” to stop the flow of oil. That technique involves shooting mud and concrete directly into the blow out preventer.

The company said that work on the first relief well, which is considered a permanent fix and began a week ago, continues and is expected to take three months to complete.

“All of the techniques being attempted or evaluated to contain the flow of oil on the seabed involve significant uncertainties because they have not been tested in these conditions before,” the company said in a statement.

“BP continues to do everything it can, in conjunction with governmental authorities and other industry experts, to find a solution to stem the flow of oil on the seabed,” it added.

An estimated 3.5 million gallons of oil have spilled since the explosion at the Deepwater rig, about 50 miles off the Louisiana coast. At that pace, the spill would surpass the 11 million gallons spilled in the Exxon Valdez disaster by next month.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *