Oil major BP was the biggest faller on Britain’s blue-chip board on
Thursday, as investors fretted that a U.S. government lawsuit might mean
the cost of its oil spill will be far higher than predicted.
Last month, BP increased by $8 billion the financial provisions it was
taking for the Gulf of Mexico oil spill; the company’s shares rose.
BP and its partners all made serious mistakes in the run-up to the
largest offshore oil spill in the U.S. history, illustrating the need
for a better safety culture in the oil drilling sector, White House oil
spill commission co-chair Bill Reilly said on yesterday.
Halliburton knew cement it mixed for BP’s doomed Macondo well was
unstable as much as two months before the April blowout that triggered
the worst U.S. oil spill, a report to a presidential panel found.
BP’s new chief executive said its rivals and the media had helped cause a
climate of fear during the summer when the oil giant’s blown-out Gulf
of Mexico well caused the worst-ever oil spill in the United States.
BP plc told a court it was committed to waiving the legal cap on its
liability from the Gulf oil spill, which could have limited the cost to
the oil giant to $75 million plus clean-up costs.
Four attorneys were appointed to a committee to lead oil spill-related
lawsuits against BP and its partners, according to court documents.