BP fought off two US demands on oil clean-up: report
Washington (AFP) June 21, 2010 Despite high-profile concessions to the White House over the Gulf of Mexico oil spill, BP successfully pushed back against two key potentially costly US demands, a report said Monday. After talks with US President Barack Obama last week, BP announced it was establishing a 20-billion-dollar compensation fund and putting up an additional 100 million dollars for laid-off oil workers. But it refused to give the White House a blank check for paying for the clean-up of the blighted Gulf region, the Wall Street Journal said. Instead the British energy company successfully brushed off US demands to pay to improve the Gulf region beyond the condition it was in before the oil slick was unleashed by an April explosion on a BP-leased rig off Louisiana. And the 100-million-dollar sweetener for laid off oil workers is just a drop in the ocean, with drilling industry experts calculating rig workers are losing as much as 300 million dollars a month, the Journal said. BP argued a six-month freeze on deepwater drilling off US shores imposed in the wake of the spill was a policy decision by the US administration, which they were not liable for. "You won't find many lawyers who will say when the government imposes a moratorium it's the company's obligation to help the workers impacted," a BP negotiator told the business daily. The final deal, hammered out first in five days of talks between the two sides, and then during the White House meeting, "was structured to limit the company's exposure to such claims," the Journal wrote. It added that BP also refused to foot the bill to meet Obama's vow to restore the blighted Louisiana marshes and waterways, ravaged by the 2005 Hurricane Katrina, to beyond the state they were before the oil spill. The US administration has long had plans to restore the region, but it remains to be seen how they will be paid for. Both sides said last week's meeting was businesslike, and the White House insists it wrested important concessions from BP. "A blank check was never in the cards," one administration official who attended the talks told the Journal. But he stressed the final deal "went a very long way."
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BP chief plans trip to Russia to offer reassurances: report London (AFP) June 21, 2010 BP chief executive Tony Hayward is planning a trip to Russia to reassure President Dmitry Medvedev the oil giant is not on the verge of collapse, the Financial Times reported Monday. Hayward will meet with Medvedev and tell him that BP can meet the cost of the liabilities from the Gulf of Mexico oil spill, said the paper, without citing a source. The timing of the trip has not been finalised ... read more |
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