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BP to raise 50bln dollars, sue Anadarko: reports

White House says BP had to be forced to more in Gulf
Washington (AFP) June 20, 2010 - The White House on Sunday ratcheted up its condemnation of how BP is handling the Gulf of Mexico oil disaster, complaining bitterly that it has had to push the oil giant to do more -- and move more quickly -- at every step of the crisis. White House chief of staff Rahm Emanuel also attacked BP CEO Tony Hayward, calling his attendance at a yacht race on Saturday "part of a long line of PR gaffes and mistakes." "A lot of things that they had to be pushed to do, and pushed to do faster," said Emanuel in an interview with ABC television's "This Week" show. He said BP had to be forced to drill two relief wells, not just one; it had to be forced to increase the rate at which it was capturing oil flowing into the Gulf; and it had to be forced to establish a 20 billion dollar escrow account to pay off claims.

Over the past week, the British energy giant has called in more ships and equipment from other locations, announced that it was ahead of schedule in drilling the relief wells, and said it would significantly boost the capture of oil leaking from its busted well. But Emanuel credited US administration pressure for obtaining those gains. "They had a system in place, not extensive enough. Not fast enough," he said. "So we've made them go from 25,000 to 50,000 barrels by the end of this month. And we think by mid-July force -- basically making them pick up their game -- they can get to 90 percent," he said. He sidestepped a question over whether the administration is confident that the relief wells, seen as the only remaining way to permanently plug the leak, would be ready by August. The chief of staff's comments were the sharpest expression yet of the rising tension between BP and the administration of President Barack Obama, who last week strong-armed the company's chiefs at a White House meeting to establish the escrow fund.

Emanuel portrayed the relationship as one in which the administration has had to push a reluctant corporate partner at every step since the April 20 explosion that destroyed a BP-leased deepwater rig, killed 11 workers and unleashed the spill. But he reserved his most scathing remarks for Hayward, who was removed from day to day oversight of BP's disaster response last week and was photographed Saturday attending a yacht race off the isle of Wight. "Well, to quote Tony Hayward, he has got his life back, he would say," Emanuel said of the outing at the yacht race, alluding to an earlier remark by Hayward that incensed political Washington. "I think we can all conclude that Tony Hayward is not going to have a second career in PR consulting," he said. "Now this is a mistake and it's a big mistake, like others he has done in the sense when he said himself, he has got his life back. Emanuel added: "What's more important is, do the people down there in that area have their life back? Do they have their livelihood back?"
by Staff Writers
London (AFP) June 20, 2010
BP is trying to raise 50 billion dollars to cover the cost of the Gulf of Mexico spill and is preparing to sue its partners in the oil field, British newspapers said Sunday.

The Sunday Telegraph said BP was readying to take legal action against US firm Anadarko, its main partner in the field, for its share of the clean-up costs.

The broadsheet cited a "senior BP source" as saying Anadarko was "shirking its responsibilities", not accepting its liabilities and that legal action in the United States was now likely to follow.

The Sunday Times said BP was working on a plan to raise 50 billion dollars to cover the cost of the oil spill, which would start next week with a bond sale to raise 10 billion dollars.

A further 20 billion dollars would come from bank loans, while the final slice is expected to come from asset sales over the next two years, the broadsheet said.

The push is to make sure they have enough money to deal with claims and to bolster market confidence in its finances, said the weekly.

Meanwhile, The Observer newspaper said BP might sell its remaining North Sea interests, plus stakes in dozens of exploration and production projects where it does not exercise overall control, in a bid to reduce its costs.

The weekly, citing "well-placed City sources", said such measures would cut costs by 14 billion dollars within six months.

BP will also study the possibility of selling its 1.4 percent stake in Rosneft, which it bought at the time of the Russian firm's 2006 flotation for one billion dollars, the report said.

earlier related report
BP chief yacht outing draws fire as oil effort slogs on
New Orleans, Louisiana (AFP) June 20, 2010 - US politicians on Sunday blasted BP chief Tony Hayward for attending a yacht race complaining bitterly of the energy giant's foot-dragging response to the two-month-old Gulf oil spill.

The latest round of recriminations came after a week of White House arm-twisting that prodded BP to agree to a 20 billion dollar fund to pay claims and a stepped up oil recovery effort in the Gulf.

But media reports of Hayward attending a yacht race off the Isle of Wight, the day after he was removed from management of the oil leak disaster, set off one of the sharpest expressions yet of administration anger with Hayward and BP.

"Well, to quote Tony Hayward, he's got his life back, as he would say," White House Chief of Staff Rahm Emanuel said, referencing the BP boss's now-notorious slip.

"And I think we can all conclude that Tony Hayward is not going to have a second career in PR (public relations) consulting," he told ABC's "This Week" in excerpts of an interview to be broadcast Sunday.

"This has just been part of a long line of PR gaffes and mistakes."

Emanuel then assailed BP for its response to the worst oil spill in US history, saying it had to be forced to do more, faster at every step since the April 20 explosion that ripped through its deepwater rig in the Gulf of Mexico, killing 11 workers.

"A lot of things that they had to be pushed to do, and pushed to do faster," said Emanuel in an interview with ABC television's "This Week" show.

The latest was a 20 billion dollar compensation fund announced last week under US pressure following complaints by fishermen and small businesses of BP foot-dragging in paying off claims.

Ken Feinberg, named to run fund, said President Barack Obama told him: "Get these claims paid. Get them paid quickly."

Over the past week, the British energy giant has called in more ships and equipment from other locations, announced that it was ahead of schedule in drilling the relief wells, and said it would significantly boost the capture of oil leaking from its busted well.

And BP raced to defend Hayward's vacation outing with his son in Britain with a spokesman calling it his "first non-working day since this started."

"Still, no matter where he is, he is always in touch with what is happening within BP," another company spokesman John Curry told AFP.

Asked about Hayward's yacht outing, Senate Republican leader Mitch McConnell told Fox News Sunday: "All of these guys could use a better PR advisor, but the point is we need to get the oil leak stopped and keep as much as the oil off the shore as we can.

"Clearly, not enough is being done. All the local officials on the Gulf are frustrated as they can be."

Earlier this week, US lawmakers skewered Hayward for failing to answer questions about the origins of the massive oil gusher that has spoiled once-pristine beaches and shorelines, killed wildlife and put a big dent in the Gulf Coast's multi-billion-dollar fishing industry.

Environmental campaigners in Britain sharply criticized Hayward's decision to attend the race.

Greenpeace's Charlie Kronick said his actions were "insulting" and the equivalent of "rubbing salt into the wounds" of those affected by the worst environmental disaster in US history.

Republican Senator Richard Shelby of Alabama, one of the four Gulf Coast states sullied by brownish tides of oily mixture thick as cake batter, called Hayward's yacht outing "the height of arrogance."

"I can tell you, that yacht ought to be here skimming and cleaning up a lot of the oil," Shelby told Fox News Sunday.

The controversy capped a nightmare week for BP, whose public image is in tatters after its shares slumped on the stock market, its credit worthiness was slashed and its top executives were hauled to the White House.

Earlier, the company said its main vessel capturing oil from the leak restarted after a 10-hour shutdown due to a blocked vent and lightning storm concerns.

The Discoverer Enterprise, a ship siphoning 15,000 to 18,000 barrels of oil per day directly from the containment cap atop the ruptured well, shut down late Friday due to a blocked flame arrester, a device intended to stop the crude from combusting, said spokesman Wine.

The joint information center for the disaster said BP is improving its recovery from the well and "continues to capture some oil and burn gas at the surface using its containment dome technique."



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ENERGY TECH
Oil spill threatens, but the party goes on in famed Key West
Key West, Florida (AFP) June 18, 2010
Sunkissed by Florida's generous rays, Hill and Robert Causey are ready to leave the beach and head to Key West's bars, untroubled by the nearby Gulf of Mexico oil spill. On Duval Street, in the heart of the city, shops are offering scuba diving trips to local coral reefs, but also t-shirts cursing BP for the disastrous spill that threatens livelihoods in this tourism-dependent city. Robe ... read more







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