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US closes response command for BP oil well

BP says Gulf oil spill costs hit 11.2 billion dollars
London (AFP) Oct 1, 2010 - British energy giant BP has so far spent 11.2 billion dollars (8.2 billion euros) in response to the Gulf of Mexico oil spill disaster, it said Friday, as new boss Bob Dudley began his first day. "The cost of the response amounts to approximately 11.2 billion dollars, including the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs," BP said in a statement. That compared with the estimate of 9.5 billion dollars given last month. The firm expects the spill will eventually cost it more than 32.2 billion dollars. BP said Friday that it would pledge certain Gulf of Mexico assets as collateral for a 20-billion-dollar compensation fund set up for residents affected by the oil spill tragedy.

"The pledging of these assets underscores our commitments to the trust which we set up to pay all legitimate claims arising from the tragedy," said Lamar McKay, Chairman and President of BP America Inc. and BP's Gulf Coast Restoration Organization. The news was delivered on Dudley's first official day as chief executive at the group's headquarters in central London. The oil spill, the worst environmental disaster in the United States, dealt a major blow to BP and forced out former boss Tony Hayward, who was slammed by the media for his clumsy handling of the spill response. Dudley, who was previously in charge of Gulf clean-up operations, announced a series of measures earlier this week that were aimed at improving safety and restoring the company's battered reputation.

On Wednesday, he unveiled a major shake-up, creating a powerful new safety division and overhauling the group's structure. BP will also conduct an assessment of how it motivates its staff in trying to improve safety and risk management, and will review how it manages third-party contractors. Dudley told the BBC on Thursday that the company could resume its shareholder dividend early next year, after axing the payments in the wake of the disaster. BP scrapped the dividend in June under heavy pressure from the US government to find billions of dollars in clean-up costs and compensation.

Dudley said on Friday that BP does not expect the US Justice Department to accuse it of "gross negligence" at the conclusion of its investigation into the Gulf of Mexico oil spill. A finding of gross negligence would dramatically increase the fines assessed due to the spill and could open BP up to criminal charges and more substantial civil liabilities. The oil disaster was triggered by a blast on the Deepwater Horizon rig -- leased by BP and operated by Transocean Energy -- that killed 11 workers on April 20. The broken well was eventually plugged but not before it gushed about 4.9 million barrels of oil into the Gulf waters. BP's share price, which jumped 1.62 percent on Thursday in response to the dividend news, added another 2.90 percent in early afternoon deals on Friday. The disaster wiped tens of billions of dollars off the company's stock market value but the shares have been finding support recently as the well was finally sealed.
by Staff Writers
Washington (AFP) Oct 1, 2010
US authorities Friday closed the special incident command center for the Gulf of Mexico oil spill more than five months after the accident that led to the worst-ever maritime environmental disaster.

Retired US Coast Guard admiral Thad Allen, who headed the response team, said officials in the region will continue to supervise the clean-up from the BP Macondo well off the Louisiana coast.

"Today the National Incident Command is disestablished and I have transferred oversight of the BP oil spill response to Rear Admiral Paul Zukunft, the unified area commander, in New Orleans," Allen said in a statement.

"Response operations will continue under transition plans that have developed with our state and local partners. Unity of effort must continue to be our common goal."

Some 205 million gallons of oil flowed into the Gulf after the April 20 explosion aboard the BP-leased Deepwater Horizon oil rig, impacting the crucial fishing and tourism industries and destroying hundreds of miles of the region's fragile coastal ecosystems.

Allen retired from the Coast Guard in June but delayed his departure to supervise the response to the disaster.

President Barack Obama said he was "profoundly grateful" for Allen's service "and particularly his outstanding leadership of the BP oil spill response effort."

"At a time when he could have enjoyed a well-deserved retirement from the United States Coast Guard, Admiral Allen stepped up to the plate and served his country when his skills and experience were urgently needed," the president said in a statement.

Separately, the Rand Corporation said Allen would join the research firm as a senior fellow, initially working on homeland security and defense issues.

"His experience and expertise will be apparent in our research and analysis on an array of homeland security, environmental and national security challenges," said Rand president and chief executive James Thomson.

earlier related report
Oil from BP spill traveled 500 kilometers: scientists
Miami (AFP) Oct 1, 2010 - Traces of oil from a ruptured BP well in the Gulf of Mexico have been found at a depth of 1,000 meters (3,200 feet) and up to 500 kilometers (300 miles) from the spill site, according to a new analysis.

A team of scientists aboard the Greenpeace ship Arctic Sunrise reported results Thursday from 10 days of sampling around areas affected by the worst oil spill in history.

"From the measurements we've taken, we see clear signs of oxygen deficiency on a large transect starting at the Macondo wellhead, all the way 300 miles to the west," said Rainer Amon, a Texas A&M scientist who participated in the research.

"How much of oil and gas components are still in the water is something that we need to now investigate in the laboratory."

The expedition had four points plotted to the west of the well to investigate what is considered the main path of oil after the April accident that led to a massive release of crude oil.

They concluded that the dissolved oxygen level was not as low as scientists would have expected if a greater proportion of oil and gas had dissolved in the water.

This suggests that oil has not "disappeared" some have suggested, and that as much as three to four million barrels of crude from the disaster have still not been accounted for.

"Despite everything that BP and the government would like us to think, the truth is, the oil spill's impact is not over," said Greenpeace US research director Kert Davies.

"Scientists know better, fishermen know better, the people of the Gulf and certainly the clean up crews endlessly picking up tar balls know better. The government and BP need to be honest with everyone about the extent of the damage."

The researchers conducted a parallel study of sea lift, and obtained samples of sediment on the ocean floor at a depth of 1,300 meters (4,20 feet), eight kilometers (five miles) from the disaster site.

Some of the samples contained visible amounts of oil with a strong smell, said Greenpeace.

The samples have been sent to an independent laboratory for study and to determine the presence of chemical dispersants.

In October, other scientists will join the Greenpeace expedition, which used a submersible to dive to the ocean floor to study the effects of oil disaster in coral reef habitats and marine communities.

"What we want to do is to come up with a mass balance of how much oil was put in the water column, the sediment surface," Amon said.

"When we've analyzed all the samples we've collected for our work and that of our colleagues, we hope to come up with a pretty good estimate of how much of the oil and gas was put into the system. Hopefully we can then come up with good ideas of where that missing oil and gas has gone."

Some 205 million gallons of oil flowed into the Gulf after the April 20 explosion aboard the BP-leased Deepwater Horizon oil rig, impacting the crucial fishing and tourism industries and destroying hundreds of miles of the region's fragile coastal ecosystems.



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ENERGY TECH
Oil from BP spill traveled 500 kilometers: scientists
Miami (AFP) Oct 1, 2010
Traces of oil from a ruptured BP well in the Gulf of Mexico have been found at a depth of 1,000 meters (3,200 feet) and up to 500 kilometers (300 miles) from the spill site, according to a new analysis. A team of scientists aboard the Greenpeace ship Arctic Sunrise reported results Thursday from 10 days of sampling around areas affected by the worst oil spill in history. "From the measur ... read more







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