BP as expected over the weekend removed its existing cap on the Macondo;$BP - said on Monday the cost of the spill had risen to about $3.5 billion

BP/GOM

· BP as expected over the weekend removed its existing cap on the Macondo well in the GOM w/the intention of replacing it w/a larger device that could capture up to 80K BPD, effectively staunching the spill entirely; BP said it was making good progress w/the swap and hoped to have the process wrapped up sometime early this week (it may not be fully in place until Wed) – Bloomberg/FT 

· BP, APA in asset sale talks - BP is in talks to sell up to $12B in assets, inc. a stake in Alaska’s Prudhoe Bay, to APA – London Times 

· BP takeover by US major wouldn’t be blocked by White House – the Obama White House has apparently told XOM and CVX that they wouldn’t stand in the way of a takeover of BP – London Times

· BP gearing up its defenses amid speculation it is becoming a takeover target; co will unveil a US$40B takeover defense strategy when it reports earnings on Jul 27 – London Telegraph.  http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7884507/BP-builds-defence-in-takeover-threat.html

· BP  - Petro China said it would “welcome” closer cooperation w/BP; Petro is seen as unlikely to buy all of BP but could bid for certain assets – FT 

· BHP says it would be interested in some of BP’s GOM assets if they came up for sale – London Times 

· BP - said on Monday the cost of the spill had risen to about $3.5 billion.  It also said more than 52,000 payments have been made to claimants, totalling almost $165 million.  RTRS 

· “weighing the possibility of bankruptcy for BP” – a NYT article discusses just that – while most don’t think the firm will have to file for protection, some are starting to wonder if BP can handle the onslaught of legal claims coming its way, esp. if the spill continues to worsen – NYT  http://www.nytimes.com/2010/07/10/us/10bp.html?partner=rss&emc=rss