Thursday, June 10, 2010

Energy/Drilling/BP-Salazar said BP would be held responsible for any job losses, PetroChina & $BP

· Drilling ban – Interior Secretary Salazar testified Wed and said it was possible the 6-month moratorium on deepwater drilling could be lifted earlier but also warned it may be extended; Salazar said BP would be held responsible for any job losses (raising further the potential liability being faced by BP – this risk contributed to further weakness in BP shrs on Wed) – Reuters 
· BP – a spokesman for the company says “nothing has changed” since Fri (when the company last updated investors) and that it saw no justification for the weakness…..restructuring experts agreed that the firm has the financial capacity to handle GOM liabilities; however, interior sec Salazar said Washington may pursue the co to pay compensation to workers laid off as a result of the 6-month drilling moratorium while the DOJ warned that it could take action to ensure BP has enough money to cover damages from the spill….this could mean an injunction against BP paying a dividend (Reuters)
· BP thinks it may be heading for a showdown w/the White House over its ultimate liability for the GOM spill (Reuters) 
· BP – Standard Chartered thinks PetroChina would benefit from a takeover of BP (Bloomberg)
· RIG – Barron’s makes pos. comments on the stock – citing valuation 

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