· Obama and Cameron spoke Sat for 30 min re the BP spill; Obama reassured Cameron that his frustration over the spill wasn’t a broader attack on the UK. Obama said he had no intention of undermining BP’s value. Cameron will visit the White House on Jul 20, his first visit to the US since becoming PM. CNBC/AP
· BP – the company is considering placing billions of dollars into a ring-fenced “clean up” fund to appease US lawmakers; this will be one of several options discussed at a board meeting Mon – London Times. http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7148985.ece
· BP – Obama will tell BP execs to establish an escrow account to help pay for damages caused by the Gulf spill; a 3rd party panel would administer payments from the fund – Politico. http://www.politico.com/news/stories/0610/38461.html
· BP – Obama is being urged by some senior US lawmakers to “punish” BP w/a ~$100B action against the firm; the move is tantamount to an attempt to “kill the company” – London Independent. http://www.independent.co.uk/news/business/news/obama-urged-to-punish-bp-with-100bn-action-1998853.html
· BP – the co’s board is meeting Mon and is expected to announce a deferment of its dividend until there is more clarity around its ultimate Gulf liabilities (BBC/London Times) http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7148985.ece
· Obama will address the nation on Tues following a two-day visit through the Gulf region – Politico. http://www.politico.com/news/stories/0610/38463.html
· BP – the company is vulnerable to becoming a takeover target w/XOM and CVX both potential buyers; however, no one will prob. buy the firm until the political rhetoric in the US dies down – London Times. http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7148985.ece
· BP – industry sources have warned that if the White House removes a cap on potential liabilities, BP could be forced into Chapt 11 bankruptcy protection – London Times. http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7148985.ece
· Gulf states seek compensation from BP as costs mount – Alabama’s schools superintendent plans to send a bill to BP to help cover lost tax receipts; Florida has asked the company to place $2.5B into escrow to cover expenses from the spill (WSJ)
· U.S. Coast Guard Rear Adm. James A. Watson sent a letter to BP officials on Friday expressing frustration with the overall pace of the effort and ordered the company to identify ways to expedite the process in the next 48 hours. AP
· BP spill is opportunity in disguise for rig-makers – Heightened U.S. scrutiny of offshore drilling could spur oil companies to replace aging rigs with new ones made in South Korea and Singapore. Samsung Heavy and Keppel Corp are set to benefit from drillers buying $300M semi-submersible rigs operating in waters up to 10,000 feet. Merrill Lynch says about 57% of current rigs are more than 20 years old. Bloomberg
· BP options show 63% drop as Hayward faces Washington – The fastest growing trade on BP shows traders see a 63% plunge in about a month as costs for its uncontrolled well surge. Bloomberg
· Obama – No intent to devalue BP – President Obama said he has no interest in undermining the value of BP. Reuters
· US Gives BP 48 hours for more aggressive oil containment plan – The US gave BP two days to come up with a better plan for containing oil leaking from its Gulf well, which is now estimated to be leaking 40,000 barrels a day. Reuters
· Britain defends BP – Britain defended BP’s economic value, sending shares up Friday. BP also discussed plans to defer its dividend as analysts now estimate clean-up costs at $3-6B and a possible fine of $8B. Reuters
· Admiral Allen expects BP to collect more oil – Admiral Thad Allen said BP should be able to offer a plan later today to capture more of leaking oil. Reuters
No comments:
Post a Comment