BP dissapointed private investors as the share price slid even though a
Massive 136 percent jump in profits were recorded for the last quarter.
This was already expected and comments from Lord Browne saying falls in oil expected have brought also helped the stock down.
He says can stand oil price even below $16 pb
The hostage situation in Nigeria getting bad maybe BP putting on some weight today?
Locals want enviroment cleaned up and profits shared.
Any chance?

Nice to read good news, Skinny, Gas in Egypt......yet today BP's sp is driven by US-attitudes and Gulf leak in particular. Maybe another Buying Opp...?
Seems the "cap" may be creating sub-sea pressure which could leak through the surface rocks.....well, that's hardly surprising since even "solid rock" has fissures - it's about time the US allowed BP to pump the oil ashore, then the well-head pressure will be significantly lower....reducing the chances of side-leaks.

This disaster has highlighted the problems of drilling - I suspect that many other drillings are closer to similar leaks than many (in the Industry) will admit. The only time it will become an issue is when things go wrong.

((The news you highlight demonstrates how wide is the investment in BP Worldwide. I just hope they step back from US interests at least until BO has moved aside maybe as far away as 2018.....))

I hold a few + topped-up, nearish the dip.
There is NO dividend anticipated.

Halliburton CEO: Sees 'New Regulatory Climate' In US Gulf
BP (LSE:BP.)
Intraday Stock Chart
Today : Monday 19 July 2010
The federal moratorium on deepwater drilling will usher in a "new regulatory climate" in the U.S. Gulf of Mexico and shift investment in oil and gas exploration to onshore and international opportunities, Dave Lesar, chief executive of Halliburton Co. (HAL), said Monday.

"Gulf activity may also remain restrained after the drilling suspension as operators need to adjust to more stringent drilling and permitting requirements," Lesar said during a conference call to discuss the company's second-quarter earnings.

The oil field services provider has begun moving some equipment abroad and deploying some of its workers in the U.S. Gulf to its onshore operations. However the company is planning on keeping much of its infrastructure in the Gulf intact for when activity picks up again.

The executive noted that some international drilling projects are experiencing short-term delays because its customers are re-examining their processes since the Bp PLC (BP, BP.LN) oil spill.

The deepwater drilling suspension is expected to have a negative impact of 5 to 8 cents on Halliburton's earnings per quarter for the rest of 2010.

BP Mulling New Method To Kill Macondo Well


Today : Tuesday 20 July 2010
BP PLC (Bp, BP.LN) is studying the possibility of plugging a deep-water spill in the U.S. Gulf by injecting drilling mud from the surface into the mouth of the leaking well, a company executive said Monday.

The method, to be studied in the next two days, could permanently stop one of the worst oil spills in U.S. history faster than doing so via a relief well that's scheduled to flood the leaking Macondo well with cement by mid-August, and the company will be making a decision about pursuing the option "over the next couple of days," said Kent Wells, a senior vice president for BP.

The so-called "static kill" operation, which involves pumping heavy drilling mud into the Macondo well, is reminiscent of the "top kill" effort that failed last May. But now that BP has shut in the spill using a new containment system, it can pump mud at a low rate and keep it at low pressure, Wells said. The fact that the reservoir has lower pressure than at the time of the "top kill" may also make a new attempt possible, he said.

Retired Coast Guard Adm. Thad Allen alluded to the static kill in a letter sent to BP Managing Director Robert Dudley, telling BP that the drilling of a relief well--long perceived to be the ultimate solution to the Deepwater Horizon spill--should be its priority. At a teleconference Monday, Wells said that the company still intends to drill the relief well even if it proceeds with the static kill option, to confirm that the leaking well is dead. The first of two relief wells is currently "looking directly" at the Macondo well, and will be able to intersect it at the end of July, he said.

Wells's comments highlight the perception that the Deepwater Horizon gusher, which has spewed millions of barrels of oil into the Gulf of Mexico since April, may be close to an end. The oil flow has been shut in since BP installed a new containment cap on Thursday. That development, however, is accompanied by concern among U.S. officials about the integrity of the Macondo well and the possibility that if the well is damaged, oil and gas might seep from the neighboring sea floor.

Wells said that sonar and seismic analysis hasn't picked up any anomalies in the well, and the fact that pressure keeps rising--albeit slowly--is a sign that the well could be in good shape. Pressure readings are currently at 6,811 pounds per square inch, and rising at 1 psi per hour, Wells said. Allen has said that the lower-than-expected pressure could be a sign of reservoir depletion, but could also indicate damage to the well.

Oil-spill responders detected leaks around the cap and about 3 kilometers away from the well. The leak around the cap may not be "significant," although it is causing a formation of hydrates, crystal-like compounds that indicate the presence of hydrocarbons. The sea-floor leak, discovered during seismic testing and sonar analysis, is believed to be unrelated to the well cap, Allen said.

Spill responders had originally planned on testing the cap and the well's integrity for a 48-hour period, which was to end Saturday. But the period has been extended in 24-hour increments at least until Tuesday afternoon. Tests to see if the cap can remain on the well are ongoing, Allen said. He said he and other responders are running down anomalies found during analysis but so far none of them appear to be serious enough to force BP to open the cap and move to a different containment option. BP has been working for 13 weeks to contain the gusher, which at one point was spewing up to 60,000 barrels of oil a day into the Gulf.

BP: Won't Release Findings Of Oil Spill Probe Next Week


Today : Tuesday 20 July 2010
BP PLC (Bp) won't release next week preliminary findings from its internal investigation into the explosion aboard the Deepwater Horizon drilling rig that triggered the three-month-long oil spill into the Gulf of Mexico, a spokesman for the company said Tuesday.

BP will publish its second-quarter results next Tuesday and analysts expect the company to address many of their concerns about how much the spill will cost BP and how it will pay for it.

Press reports also suggested that BP would release preliminary results from its investigation into the causes of the accident, but BP hasn't publicly confirmed this.

BP expects its investigation to conclude in September or October, the spokesman said.

Federal authorities investigating the spill are focusing on bad decisions, missed warnings and worker disagreements in the hours before the blast. In particular, the panel is examining why rig workers missed telltale signs that the well was close to an uncontrolled blowout, according to an internal document assembled by the investigators.

EARNINGS PREVIEW: BP's Woes Set To Dominate UK Oil Sector 2Q

Today : Tuesday 20 July 2010
TAKING THE PULSE: Second quarter earnings in the U.K. oil sector will unsurprisingly be dominated by news about Bp PLC's (BP) continuing response to the Gulf of Mexico oil spill. Although the company has, at least temporarily, capped the leaking well, many questions remain about how it will meet future costs from the spill, which assets it will sell to raise cash and how the disaster will affect BP's strategy in the long term.

Analysts will also be looking to Bg Group PLC (Bg.LN) and Royal Dutch Shell PLC (RDSB.LN) for an indication of how changes in oil industry regulation in the wake of the spill might affect them. Both BG Group and Shell have large exposure to deep water oil drilling.

COMPANIES TO WATCH:

BP PLC (BP) -- July 27

MARKET EXPECTATIONS: BP's underlying earnings are expected to be strong, rising between 70% and 80% from year-ago levels. Although the market may take some comfort in BP's profits and strong cash flow, investors will really want to see greater clarity on the likely cost of the Gulf oil spill, how BP will pay it and when dividend payments might resume. Credit Suisse estimates that BP will book $2.8 billion of spill related costs in the quarter. NCB Stockbrokers analyst Peter Hutton said BP may make provisions for known future liabilities, bringing the total spill cost booked to $4.6 billion and wiping out the bulk of BP's operating profit.

MAIN FOCUS: "We expect that BP will want to communicate strong messages about its balance sheet," said Hutton. BP's operating cash flow, its debt level and its access to short-term liquidity will be heavily scrutinized. BP may be asked for the first time to put a number on likely oil spill liabilities. The market will also be looking for clues about BP's plans to divest $10 billion of assets, although analysts and people familiar with the sale process said it may be too much to expect a firm deal to be announced so quickly.

BG Group PLC (BG.LN) -- July 28

MARKET EXPECTATIONS: Continuing weakness in natural gas markets is expected to hit BG's all-important liquefied natural gas business, where earnings are seen flat or down slightly on a year ago. Citigroup sees BG's net profit rising just 10% year-on-year, mostly due to gas prices but also due to heavy field maintenance.

MAIN FOCUS: Tremendous uncertainty still hangs over BG Group's operations in Kazakhstan. The company is facing numerous allegations, both criminal and regulatory, which analyst say are linked to the Kazakh state oil company's desire to take a stake in the Karachaganak project. BG has not faced any new charges recently, but Chevron Corp. (CVX), which operates the Tengiz project, recently came under similar attack.

Royal Dutch Shell PLC (RDSB.LN) -- July 29

MARKET EXPECTATIONS: Shell's oil and gas output is expected to be higher than a year ago due to the startup of the Sakhalin-2 liquefied natural gas project and improved security in Nigeria. This improvement, combined with higher oil prices and better refining margins, should boost Shell's adjusted earnings by around a quarter compared with a year earlier, analysts said. "We expect a competent if unspectacular set of results from Shell," said Hutton.

MAIN FOCUS: Analysts will be looking for signs that delivery of Shell's major gas projects in Qatar remain on track for the end of this year and early next year. An update on Shell's drilling plans offshore Alaska, which have been pushed back to 2011 in the wake of the Gulf of Mexico spill, would also be welcomed.

BP: To Sell Oil,Gas Production, Exploration Assets In Pakistan


Today : Tuesday 20 July 2010
BP PLC (Bp) plans to sell its oil and gas production assets and exploration licenses in Pakistan as part of a divestment process aimed at raising $10 billion to cover the cost of the Gulf of Mexico oil spill, a company spokesman said Tuesday.

Pakistan is not a core area for BP. Its assets there produced 173 million cubic feet of gas a day in 2009, 2% of the company's total natural gas output.

All of BP's Pakistan oil and gas production operations are based in the Sindh province. It also has significant offshore acreage for hydrocarbon exploration.

Things getting interesting.

Lawmakers Clash Over Responsibility for BP Spill

Officials who regulated offshore oil and gas drilling starting with the Bush administration on Tuesday defended their oversight of the industry during the first congressional probe of the government's actions in the period before the Bp Plc (BP, BP.LN) oil spill.

The House Energy and Commerce Committee hearing yielded new finger-pointing, with Democrats leveling some of their harshest questions at former Interior Secretary Gale Norton, who served in the Bush administration. But Interior Secretary Ken Salazar also took some blame from members of his own party, as Republicans noted that the BP disaster occurred on his watch.

"The Department of Interior under both President Bush and President Obama made serious mistakes," said Rep. Henry Waxman (D, Calif.) the chairman of the House Energy and Commerce Committee, at a hearing. "The cop on the beat was off duty for nearly a decade, and this gave rise to a dangerous culture of permissiveness."

Interior Secretary: US Could Have Done More On Offshore Safety

U.S. Interior Secretary Ken Salazar on Tuesday came close to accepting some responsibility for the Bp PLC (BP, BP.LN) oil spill, telling a U.S. House panel that government could have done more to ensure safety.

"Prior administrations and this administration have not done as much as we could have done relative to making sure that there was safer production in the outercontinental shelf," Salazar told a House Energy and Commerce subcommittee. Officials "were lulled into a sense of safety," he said.

The uproar over the blown-out well, which has stopped gushing oil due to the installation of a new cap, has prompted the Interior Department to ban deepwater drilling until Nov. 30 as it puts together new safety policies. The department's Bureau of Ocean Energy Management has also imposed new regulations on drilling in shallow waters, including requiring an analysis of risks and worst-case scenarios.

The Obama administration's approach to offshore drilling has been in the spotlight because the April 20 explosion of the Deepwater Horizon rig occurred less than one month after the Obama administration announced plans to expand offshore-drilling as part of an effort to build goodwill among Republicans at a time when the White House wanted Congress to pass energy and climate legislation. By May 27, President Barack Obama had reversed course and halted the development of exploratory wells in the deep waters of the Gulf of Mexico.

India Oil Minister: Interested In Buying BP Assets In Vietnam

Today : Wednesday 21 July 2010
India is interested in buying Bp PLC (BP) assets in Vietnam, Oil Minister Murli Deora told Dow Jones Newswires Wednesday.

"We are trying," Deora said over the telephone from Vietnam. He didn't elaborate.

BP said Tuesday it has agreed to sell assets in the U.S., Canada and Egypt to Apache Corp. (APA) for a total of $7 billion. It also said it plans to sell its gas fields and a pipeline in Vietnam, as well as exploration licenses in Pakistan.

Deora is in Vietnam for a meeting of east Asia energy ministers.

BP Alaska Fields Still On Table As Asset Sales Continue-Sources

Today : Wednesday 21 July 2010
Some of Bp PLC's (BP) oil production assets in Alaska remain up for sale, despite not being included in a $7 billion package of assets sold to U.S. energy company Apache Corp. (APA) Tuesday, said people familiar with the matter Wednesday.

BP is also proceeding quickly with talks with a number of parties about other asset sales that are part of a push to raise $10 billion to help cover the cost of the Gulf of Mexico oil spill, one of the people said.

BP said Tuesday it will sell its natural gas assets in Pakistan and Vietnam. And the company has already had contacts with potential buyers for these assets, that person said.

BP has also reportedly had talks with China National Offshore Oil Company (CEO) over the sale of its 60% stake in Pan American Energy, which operates primarily in Argentina, and has considered selling assets in the U.K. North Sea.

So Tony Hayward is about to be given the Order of the Boot...only the Company is in discussion as to his severance package...
Seems to be the discussion should be whether he gets a No10 US-Jackboot - or - a more European No9 duffers slipper.
Reminds me of the Alan Partridge Pool-Attendant scent (was it?),
In the first year there were no accidents.
In the second year there were no accidents
.......................
In the ...th year there was

Tony Hayward was doing well all the time there was no crisis, then as soon as one appears - it seems he was rather unfeeling and the US citizens wanted "their-life back" . . . . but that wasn't going to happen soon. . . . . . . . no wonder they were unhappy.

Do the decent thing and go quietly, leave the car keys and the money, switch off the office lights and close the door gently.
But please Go!

UPDATE ON GULF OF MEXICO OIL SPILL

BP today provided an update on developments in the response to the MC252 oil
well incident in the Gulf of Mexico.

Subsea Source Control and Containment

On July 23, with the guidance and approval of the National Incident Commander
(NIC) and the leadership and direction of the federal government, relief well
activities at the MC252 well site were temporarily suspended because of
potentially adverse weather associated with Tropical Storm Bonnie. Following the
passing of the weather system, the DDIII drilling rig returned to the relief
well site on July 24 and is taking steps necessary to reconnect with the well
and resume drilling operations. These steps are expected to take a number of
days.

The DDII drilling rig is moving back into position, and will take steps
necessary to reconnect to the second relief well. However, work on the second
relief well has been suspended so as not to interfere with the first.

The MC252 well has been successfully shut-in for integrity testing since July
15.

BP continues to closely monitor the MC252 well and well-capping structure, under
the guidance of the Unified Command.

Conclusion of Morgan Stanley broker note:
"Good operational progress in Macondo: Despite the adverse weather conditions, the integrity of the well with containment system remains robust. Last night, the National Incident Commander indicated no anomalies detected, while the pressure in well is now at c. 6900psi. The 'static kill' of the well should happen in the 1st week of August although it appears the process could begin towards end of this week.
Valuation: The shares trading at 5.3x 2012 consensus PEs and trading on a 20-25% discount to Total and Shell we maintain our Overweight rating and argue that the relative call will be made between 450-500p/share."

Half yearly Report.

Following the explosion and subsequent sinking of the Transocean Holdings LLC operated Deepwater Horizon drilling rig in the Gulf of Mexico in April 2010, BP and US Government authorities have been conducting unprecedented oil spill response activities. These ongoing efforts have sought to halt the flow of hydrocarbons from the well, capture and contain oil that has been leaking, protect the shores and clean up oil that has reached the shores. BP's own investigation, as well as several independent investigations, into the cause of the accident are ongoing.

BP's second quarter replacement cost loss was $16,973 million, compared with a profit of $3,140 million a year ago. For the half year, replacement cost loss was $11,375 million compared with a profit of $5,527 million a year ago.

The group income statement for the second quarter reflects a pre-tax charge of $32.2 billion related to the Gulf of Mexico oil spill. This includes $2.9 billion which has been charged for costs incurred to 30 June 2010. All charges relating to the incident have been treated as non-operating items. For further information on the Gulf of Mexico oil spill and its consequences see pages 2 - 5, Note 2 on pages 25 - 28, Principal risks and uncertainties on pages 33 -39 and Legal proceedings on pages 40 - 43. Further information on BP's second quarter results is provided below.

Non-operating items and fair value accounting effects for the second quarter, on a post-tax basis, had a net unfavourable impact of $21,953 million compared with a net favourable impact of $202 million in the second quarter of 2009. For the half year, the respective amounts were $22,002 million unfavourable and $8 million favourable. See pages 6, 21 and 22 for further details.

Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $214 million for the second quarter, compared with $321 million for the same period last year. For the half year, the respective amounts were $442 million and $689 million.

The effective tax rate on replacement cost profit or loss for the second quarter and half year was 30% and 27% respectively, compared with 35% and 36% a year ago. Excluding the impact of the Gulf of Mexico oil spill, the effective tax rate for the second quarter was 35% and for the half year was 34%.

Net cash provided by operating activities for the quarter and half year was $6.8 billion and $14.4 billion, including a $2.1-billion cash outflow relating to the Gulf of Mexico oil spill response, compared with $6.8 billion and $12.3 billion respectively a year ago.

Total capital expenditure for the second quarter and half year was $6.2 billion and $10.9 billion respectively. Organic capital expenditure(c) in the second quarter and half year was $4.4 billion and $8.2 billion respectively. Organic capital expenditure for 2010 and 2011 is expected to be around $18 billion a year. Disposal proceeds were $0.7 billion for the quarter and $0.8 billion for the half year. The group plans to dispose of assets with a value of up to $30 billion over the next 18 months, including $7 billion from the recently announced disposals to Apache Corporation.

Net debt at the end of the quarter was $23.2 billion, compared with $27.1 billion a year ago. The ratio of net debt to net debt plus equity was 21% compared with 22% a year ago. The net debt ratio at the end of the second quarter 2010 was impacted by the reduction in equity arising from the liabilities we have recognized in relation to the Gulf of Mexico oil spill. The group intends to reduce net debt to $10-15 billion within the next 18 months.

Cash costs(d) for the second quarter and half year were slightly lower than a year ago. Cash costs do not include amounts relating to the Gulf of Mexico oil spill.

BP SETS OUT GoM COSTS, ASSETS SALES, PERFORMANCE

RNS Number : 9699P
July 27, 2010


BP SETS OUT GULF OF MEXICO COSTS, FURTHER ASSET SALES AND STRONG OPERATING
PERFORMANCE


BP announced today that it has taken a pre-tax charge of $32.2 billion for the
Gulf of Mexico oil spill, including the $20 billion escrow compensation fund
previously announced.

The company will also tell analysts later today that it plans to sell assets for
up to $30 billion over the next 18 months, primarily in the upstream business,
and selected on the basis that they are worth more to other companies than to
BP. This portfolio high grading will leave the company with a smaller but higher
quality Exploration & Production business.

Meanwhile BP continues to access new business opportunities, with new agreements
in Azerbaijan, Egypt, China and Indonesia announced since the end of the first
quarter.

The company said it was taking a prudent approach to managing the balance sheet
and its financial liquidity, in order to ensure that BP has the flexibility to
meet all of its future financial obligations. As a result it plans to reduce its
net debt level down to a range of $10-$15 billion within the next 18 months,
compared to net debt of $23 billion at the end of June. Group capital spending
for 2010 and 2011 will be about $18 billion a year, in line with previous
forecasts.

"With the leak now capped we have reached a significant milestone," said Tony
Hayward, group chief executive. "This provides a firm basis for moving forward
to reshape the company. By disposing of assets worth more to others than to BP
we can better align our strategic footprint with our global strengths."

In reporting second quarter results, BP revealed that it is taking a charge of
$32.2 billion to reflect the impact of the Gulf of Mexico oil spill, including
costs to date of $2.9 billion for the response and a charge of $29.3 billion for
future costs, including the funding of the $20 billion escrow fund.

"We expect we will pay the substantial majority of the remaining direct spill
response costs by the end of the year. Other costs are likely to be spread over
a number of years, including any fines and penalties, longer-term remediation,
compensation and litigation costs," Hayward said.

The company revealed the charge as it announced a headline replacement cost loss
for the quarter of $17 billion. After adjusting for all non-operating items and
fair value accounting effects, second-quarter underlying replacement cost profit
was $5 billion compared to $2.9 billion in the second quarter of 2009.

"The costs and charges involved in meeting our commitments in responding to the
Gulf of Mexico oil spill are very significant and this $17 billion reported loss
reflects that. However outside the Gulf it is very encouraging that BP's global
business has delivered another strong underlying performance, which means that
the company is in robust shape to meet its responsibilities in dealing with the
human tragedy and oil spill in the Gulf of Mexico," Hayward said.

Higher prices for oil and gas made up for slightly lower output and a loss in
gas marketing and trading in Exploration & Production, while Refining &
Marketing reported increased profits as a result of strong performance in the
fuels value chains and the lubricants and petrochemicals businesses.

In Refining & Marketing the company continues to expect an annualised pre-tax
performance improvement of over $2 billion, to be achieved over the next two to
three years. BP's underlying second quarter downstream result was the strongest
since Q2 2006, when refining margins were more than double current levels, with
the US business returning to profitability for the first time in over a year.

The company also gave more details of the strong financial position in which it
faces its responsibilities. Second-quarter operating cash flow, excluding Gulf
of Mexico oil spill costs, was $8.9 billion, up 31 per cent compared with the
same quarter last year.

This higher operating cash flow enabled the group to reduce its net debt by $2.9
billion in the first half, despite payments being made in respect of the Gulf of
Mexico oil spill. In addition, the company has lined up substantial additional
bank borrowing facilities, all of which remain undrawn, has reduced cash outflow
in 2010 by reducing capex and by cancelling the payment of further dividends
this year, as previously announced.

"We remain confident in our ability to meet our obligations to those on the Gulf
Coast of the United States, other impacted parties and all our stakeholders,"
said BP Chairman Carl-Henric Svanberg. "Our shareholders have not received any
dividends since the spill occurred. As we said last month, the Board remains
strongly committed to the payment of future dividends and delivering long term
value to shareholders. The Board will consider its position on future dividend
payments at the time of issuance of the fourth quarter 2010 results in February
2011."

BP's Prioritizes Restoration Of US Reputation With New CEO

Today : Tuesday 27 July 2010
BP PLC (Bp) said Tuesday that Robert Dudley, the executive director who heads the company's oil spill response effort in the Gulf of Mexico, will lead the entire company from October 1 when the embattled Chief Executive Tony Hayward steps down.

"It will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board," Chairman Carl-Henric Svanberg said in a statement.

In sacrificing Hayward and choosing Dudley, BP's board of directors has made it clear that restoring the company's reputation in the U.S. is its top priority, said analysts.

"This is nothing to do with (Hayward's) business judgment, it's what is politically convenient," said Oppenheimer analyst Fadel Gheit.

"The Gulf of Mexico explosion was a terrible tragedy for which--as the Man in charge of BP when it happened--I will always feel a deep responsibility, regardless of where blame is ultimately found to lie," said Hayward.

Svanberg added: "We are highly fortunate to have a successor of the calibre of Bob Dudley who has spent his working life in the oil industry both in the US and overseas."

?

A few hours old.....

BP Asks US Lawmakers To Soften Offshore Drilling Legislation

Today : Thursday 29 July 2010
BP PLC (Bp, BP.LN) on Wednesday appealed to House leaders to soften legislation that responds to the company's oil spill in the Gulf of Mexico, citing concern about the "drastic impact" the legislation could have for the economy and jobs in the region.

The company acknowledged its part in the April 20 disaster, which killed 11 people and sent oil gushing from a broken BP well into the ocean in the worst offshore oil spill in U.S history.

But BP, which describes itself as the largest developer in the Gulf of Mexico, also said that its operations "contribute significantly to domestic oil production" and warned that "limiting production" would have "adverse effects on consumers and businesses."

The House is set to vote Friday on legislation that would overhaul the U.S. system of offshore drilling, including by exposing companies to unlimited claims for damages beyond cleanup costs. Companies with poor safety records would also be banned from obtaining new drilling leases.

The letter was dated July 28 and signed by David Nagel, the executive vice president of BP America. It was sent to House Speaker Nancy Pelosi (D, Calif.) and House Minority Leader John Boehner (R, Ohio).

Clubby long BP

http://321energy.com/editorials/hunter/hunter072910.html

BP will begin the process to permanently plug the oil leak in the Gulf of Mexico as soon as this evening, as the US backlash against the company continues.

The operation, known as a "static kill" and which involves the pumping of mud into the well, will force the oil back into the reservoir.

BP will then complete drilling the relief well to pump mud and cement into the Macondo to permanently plug the spill source. The well has been temporarily capped since 15 July, but the danger still lurks that it will start leaking again before completion of the relief well. However. the so-called static kill will potentially shut off the well two weeks before the relief well could.

The company had hoped to have completed plugging the leak by the middle of last month, but was hampered by tropical storm Barnie.

Away from the Gulf, spill there are continuing problems for BP, with calls for its American petrol stations to be re-branded amid falling sales. The distributors who control most of BP's US forecourts say sales have dipped by as much as 40% since the Deepwater Horizon explosion on 20 April.

John Kleine, executive director of the BP Amoco Marketers Association, wants to see BP stations revert to Amoco, the name the firm abandoned in 1998 when it took over the US oil giant.

Some petrol station owners hope the name change will not only help ailing sales but put a halt to the instances of vandalism that have occurred since the disastrous oil spill. However, BP has ruled out a brand change in the immediate future.

BP suffered a further blow on Friday as the House of Representatives passed an amendment containing rigorous oil safety standards that could, if they became law, prevent the company from undertaking further offshore drilling. The proposal is not, however, under Senate consideration.