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?

Bloomberg reported online radio well capped, but you know what they are like for lying I will wait until I read it in the Sun newspaper, about as reliable

we now know that this latest attempt has failed too .... that being so, sp must assuredly have much more downside in store

almost as an aside, though it really lives on a more generalised thread, now that US is banning deep-sea exploration and drilling in all probability for the next several years, surely those companies who now have significant proven reserves will become even more important targets for predators.

UPDATE ON GULF OF MEXICO OIL SPILL

BP PLC
01 June 2010

press release

June 1, 2010

UPDATE ON GULF OF MEXICO OIL SPILL RESPONSE

BP today provided an update on developments in the response to the MC252 oil
well incident in the Gulf of Mexico. This follows an announcement on May 29 to
move to the next step in the subsea operations.

Subsea Source Control and Containment

Preparations are ongoing for deployment of the lower marine riser package (LMRP)
cap containment system. Remotely operated vehicles (ROVs) are engaged in
preliminary operations, including preparing for operations to cut through and
separate the damaged riser from the LMRP at the top of the Deepwater Horizon's
failed blow-out preventer (BOP).

Deployment of the system will involve connecting the containment cap to a riser
from the Discoverer Enterprise drillship and then placing it over the LMRP, with
the intention of capturing most of the oil and gas flowing from the well and
transporting it to the drillship on the surface.

All of these operations, including the cutting of the riser, are complex,
involve risks and uncertainties, and have to be carried out by ROVs at 5,000
feet under water. Systems such as the LMRP containment cap have never before
been deployed at these depths and conditions, and their efficiency and ability
to contain the oil and gas cannot be assured. It is currently anticipated that
attachment of the LMRP cap will be attempted later this week; however,
operational delays could impact anticipated timeframes.

Preparations to use the Discoverer Enterprise to deploy the LMRP cap and the
intended severing of the damaged riser mean that the riser insertion tube tool,
previously deployed, will not be reinserted into the main leak at the end of the
riser.

Work on the first relief well, which started on May 2, continues and it has
currently reached a depth of 12,090 feet. Work on the second relief well, which
started on May 16, had reached a depth of 8,576 feet before drilling was
temporarily suspended on May 26. Drilling operations on the second relief well
resumed on May 30. Both wells are still estimated to take around three months to
complete from commencement of drilling.

Surface Spill Response and Containment

Work continues to collect and disperse oil that has reached the surface of the
sea, to protect the shoreline of the Gulf of Mexico, and to collect and clean up
any oil that has reached shore.

Over 1,600 vessels are now involved in the response effort, including
skimmers, tugs, barges and recovery vessels. Operations to skim oil from the
surface of the water have now recovered, in total, some 321,000 barrels (13.5
million gallons) of oily liquid.

The total length of containment boom deployed as part of efforts to prevent
oil reaching the coast is now over 1.9 million feet, and an additional 1.8
million feet of sorbent boom has also been deployed.

So far approximately 30,000 claims have been submitted and more than 15,000
payments already have been made, totalling some $40 million. BP has received
more than 110,000 calls into its help lines to date.

Additional information

The cost of the response to date amounts to about $990 million, including the
cost of the spill response, containment, relief well drilling, grants to the
Gulf states, claims paid and federal costs. It is too early to quantify other
potential costs and liabilities associated with the incident.
--

BP SETS OUT ENHANCEMENTS TO LMRP CONTAINMENT STRATEGY TO KEEP OIL OUT OF GULF

BP announced today that, after extensive consultation with National Incident
Commander Admiral Thad Allen and other members of the Federal government, it
plans to further enhance the lower marine riser package ("LMRP") containment
system currently scheduled to be deployed this week with further measures that
are expected to keep additional oil out of the Gulf of Mexico.

The additional steps announced today will follow placement of the LMRP
containment cap, which is expected this week. Preparations for these additional
planned enhancements are already underway.

The first planned addition is intended to use the hoses and manifold that were
deployed for the 'top kill' operation to take oil and gas from the failed
Deepwater Horizon blow-out preventer (BOP) through a separate riser to an
intervention vessel on the surface, in addition to the LMRP cap system. This
system, which currently is expected to be available for deployment in mid-June,
is intended to increase the overall efficiency of the containment operation by
possibly increasing the amount of oil and gas flow that can be captured from the
well.

It is anticipated that the next planned operation will provide a more permanent
system by directing oil and gas to a new free-standing riser ending
approximately 300 feet below sea level. A flexible hose then will be attached
to a containment vessel. This long-term option is designed to permit the system
to more effectively disconnect and reconnect the riser to provide the greatest
flexibility for operations during a hurricane. Implementation of this
enhancement is expected in late June or early July.

"BP's priority is to keep as much oil as we can from causing additional harm to
the Gulf, the shoreline and the people of the region," said BP Chief Executive
Tony Hayward. "This planned multi-step containment strategy is our best option
for achieving this as we work hard towards completing the relief wells that will
kill this well completely. Our teams have been working closely with the Federal
government, and I have discussed this plan personally with Admiral Allen. I
hope we will see progress with these containment procedures in the coming days."


The strategy and specific containment plans have been extensively reviewed by
BP's scientific and engineering team together with a team of government
scientists assembled by Secretaries Ken Salazar and Stephen Chu, including
leading researchers from the Department of Energy's National Labs and Dr. Marsha
McNutt, Director of the U.S. Geological Survey.

The planned containment strategy is described in further detail in a video
briefing, available at www.bp.com/gulfofmexicoresponse in the 'Response in
Video' section entitled "Kent Wells technical briefing - 31 May 2010."

---

down 70p in 10 minutes .....gulp .....400p looking a distinct possibility by 8-30 ......

Wish I took out a short here....

The Gulf of Mexico oil spill is now turning into a catastrophe

The failure of BP's 'top kill' means there is no end in sight to the misery of Louisiana's people and wildlife, writes Geoffrey Lean.

In my dreams hey !!! They aint started showing the dead sea-life and birds yet either, be below 3 before it caps the well. And talk of seizing all BP. assets in the U.S wont do much for the share price either. Personally I think its a disgrace - if you aint got the technology to be able avoid a catastrophe like this, you shouldn't be drilling in the first place. Guess we better get ready for a fuel price hike now, so they can claw a few quid back.

sorry, but your final comment is a load of tosh ..... firstly, it is very questionable whether this catastrophe could have been foreseen, though there are unsubstantiated rumours that all was not quite well a few hours before disaster struck

more to the point, it is totally and utterly impossible to work out beforehand, even with CAD how to resolve a disaster such as this ..... as far as everyone knew, the failsafe systems were in place and, as far as possible, proven to be effective ..... however, it seems that a massive methane bubble was struck and came straight up through the apparatus, with such pressure that it could not be withstood

cynic will the gas pressure eventually ease and make it easier to plug the well?

i really have no idea, for though we deal with the off-shore industry, assuredly not in this sort of esoteric and highly specialised field .....

for sure methane is a very light and volatile gas (you know what it's like!), but i don't think that's the problem .... as far as my very amateur eye can tell, though the methane bubble caused the initial blowout, the oil now escaping is doing so under its own pressure, just like the good old-fashioned gushers on land that one used to read or hear about ..... that it's all happening a mile under the sea exacerbates the problem, not least because of the truly huge pressures being exerted

BP market value ('09/'10) : $177,609,000,000 - Turnover: $247,787,000,000 - Net income $17,168,000,000. I agree that it is going to knock them back as the sp is currently being hit badly & still plenty of problems to come. Even if the spill costs them $1bn it is not going to make them go bust. Suspect divi may be cut though.

BP Oil Spill Threatens Wider Coastline as Storm Season Starts

June 1 (Bloomberg) -- Oil from the biggest spill in U.S. history could spread this week to threaten the coasts of Mississippi and Alabama, according a weather forecast that comes as the Atlantic hurricane season officially starts.

Winds from the southwest are predicted this week, pushing the oil from BP Plcs broken well in the Gulf of Mexico to a wider area of the U.S. coast, the National Oceanic and Atmospheric Administration said in a statement on its Website.

Results indicate that oil may move north to threaten the barrier islands off Mississippi and Alabama later in the forecast period, the agency known as NOAA said.

Clear as mud.

Live feeds from remotely operated vehicles (ROV)

BP Shares Plunge 13% On 'Top-Kill' Failure
By Steve Goldstein
Of MarketWatch

LONDON (MarketWatch)-- BP's failed attempt at pouring thousands of barrels of mud to plug the worst oil spill in U.S. waters sent shares of the London-listed oil giant down by 13% in early trade Tuesday.

Tuesday's decline alone wipes GBP10.6 billion ($15.4 billion) off BP's market capitalization, and the stock has lost over a third of its value since the Deepwater Horizon exploded on April 20.

BP (BP) said Tuesday that it is working on deploying a so-called lower marine riser package containment system, but as with other attempts by BP, the system has never been attempted at 5,000 feet under water.

The one solution that seems likely to work -- drilling relief wells -- won't be completed until August.

"This planned multi-step containment strategy is our best option for achieving this as we work hard towards completing the relief wells that will kill this well completely," said Chief Executive Tony Hayward in a statement.

The cost to date of the spill response, relief-well drilling, grants to Gulf states, claims paid and federal costs runs to $990 million, BP said.

Analysts estimate billions more in damages and cleanup costs. Given that rivals like Royal Dutch Shell (RDSB.LN) and Total SA (TOT) have dropped by roughly 11% to 15% over the same time frame, roughly $44 billion has been taken off BP's valuation due to the spill.

UPDATE: BP Shares Plunge 14% On 'Top-Kill' Failure

The nearest cleanup comparison would be the Exxon Valdez spill, which is now the second worst in U.S. history.

Fadel Gheit, an analyst at Oppenheimer Research, notes Exxon -- which is now Exxon Mobil Corp. (XOM) -- originally set aside $5.4 billion to cover legal settlements and paid $3.4 billion in cleanup costs. The Exxon legal settlement was eventually reduced to just $507.5 million with $500 million in interest payments.

Under the Oil Pollution Act passed since the Exxon spill, damages are capped at just $75 million. Even if Congress retroactively boosts that cap to $10 billion, as some analysts are speculating, BP would be on the hook for just $6.5 billion, because it owns 65% of the concession.

That cap on damages goes out the window, however, if BP is shown to be negligent.

BP to promise $10bn payday as criminal inquiry looms

BPs long-term credibility was at stake last night as its chief executive fought to halt a headlong slide in its stock price and the Obama Administration announced a criminal investigation into the Deepwater Horizon oil disaster.

After losing a third of its value in six weeks, BP is expected to promise shareholders this week that their annual dividend more than $10 billion last year will be maintained.

AT A GLANCE: BP Gulf of Mexico Oil Spill Hits Insurers
THE EVENT: On April 22, the drilling rig Deepwater Horizon, owned by Transocean Ltd. (RIG) and leased to BP PLC (BP.LN), sank off the coast of Louisiana in the Gulf of Mexico after an explosion and fire onboard the rig. Eleven people died from the event. Efforts to stop the oil spill have so far been unsuccessful. More than 12,000 barrels of oil per day are spilling into the ocean, threatening to cause an environmental catastrophe along the U.S. coastline. If containment efforts fail, the crude will likely continue to flow at least until a relief well is completed in August.

GENERAL IMPACT ON INSURERS: As the oil spill continues, insurance claims are also expected to soar and hit insurance and reinsurance companies that cover different aspects of the disaster-- including marine hull, marine liability, general liability, environmental/pollution liability, business interruption, directors' and officers' liability and workers' compensation.

IMPACT ON LLOYD'S OF LONDON INSURERS: Lloyd's of London insurers are expected to fork out between $300 million and $600 million on claims from the Deepwater Horizon explosion, according to the London market, although the figures remain at an early stage as assessing claims continues.

Some of the larger exposures have fallen at the doors of listed insurers Catlin Group Ltd (CGL.LN), Lancashire Holdings Ltd (LRE.LN) and Chaucer Holdings PLC (CHU.LN) with the former forecasting losses of around $40 million and the other two estimating $25 million of losses each.

ANALYST REACTION:

*Moody's Investors Service said Thursday that total insured losses from this event are currently estimated to be between $1.4 billion and $3.5 billion. "With several parties involved in the drilling work, dozens of class-action lawsuits filed and the ultimate extent of environmental damage unknown, the complexities associated with loss claims are significant and could take many years to be resolved," Moody's said.

*Oriel Securities analyst Thomas Dorner said last week: "The scale of industry loss will lead to significant price increases. Although energy rates declined in early 2010 from peak levels in 2009, this loss evidences that rates are still not high enough to compensate for the risk of loss. In our view, it is likely that midsize oil and gas companies will increase the amount of cover they purchase. Larger players are expected to continue to self insure."

WHAT THE KEY COMPANIES SAY:

*BP: CEO Tony Hayward has tried to play down the effect of the oil spill by saying May 18 that "the overall environmental impact [of the Deepwater Horizon oil spill] will be very, very modest." Recently, he admitted BP wasn't adequately prepared for the crisis, and told the Financial Times: "What is undoubtedly true is that we did not have the tools you would want in your toolkit." BP has tried various methods to plug the oil spill and is currently using robot submarines TO siphon off oil belching from the ruptured wellhead.

*TRANSOCEAN: CEO Steven Newman said May 28 the company will pay a shareholder-approved $1 billion dividend and still meet all of its legal obligations related to the oil spill. "The payment of the dividend will not affect the company's ability to meet its legal obligations," Newman said. More than a dozen U.S. senators, led by Ron Wyden, questioned the dividend payment, saying it may make it more difficult to pursue liability claims against the company.

SHARE REACTION: BP shares have fallen 34% since April 21 to close at 430 pence on Wednesday. Over the same period, Transocean shares have fallen 47% to $48.45 on Tuesday.

DEEPWATER HORIZON LOSS ESTIMATES (Source: Moody's Investor Service):

COMPANY MIDPOINT OF RANGE OR BEST ESTIMATE
Swiss Re $200M
Munich Re $80M
Partner Re $65M
Hannover Re $53M
Validus Holdings $42M
Catlin Group $40M
Lancashire Holdings $25M
Chaucer Holdings $25M
Montpelier Re Holdings $20M
Amlin $15M
Transatlantic Holdings $15M
Hiscox $15M
RJ Kiln & Co. $10M
Beazley $6M

Just seen some of the photo's of Sea-birds covered in oil on the MSN website, plus photo's of anti-BP protesters - Can see this will be the start of things to come shortly, get your 'short' on - these photo's are going to make the SP plummet. This will take a real hammering next week.

Unfortunatley its more likely to be whether or not they hold the dividend that determines the direction now. Even if the cap works, it looks to be August before a relief well is drilled, and I think that is largely factored in the price.