BP shares suffer as clean up costs rise

23 June 2010 / by Lois Avery

BP shares fell yesterday as fears mounted that the oil company may be running out of money following the giant spill in the Gulf of Mexico.

Shares have fallen by 50 per cent in value since the oil rig exploded in April killing 11 and leaving a scene of devastation.

BP has since come under fierce criticism from US and UK politicians to clean up the mess and the mounting pressure has had a dramatic affect on their share price.

Shares slipped another 2. 2 per cent on Monday as speculation that the company was beginning to struggle to pay for the clean up operation rose.

Already $20 billion has been spent on the clean up and compensation payouts to those affected in the Gulf region.

And investors have been further panicked following the news that BP could take legal action against its joint venture partner Anadarko after they refused to contribute to the costs of the clean up.

BP Chief Executive Tony Hayward said in a statement: “Other parties besides BP may be responsible for costs and liabilities arising from the oil spill, and we expect those parties to live up to their obligations.

“But how the costs and liabilities are eventually allocated between various parties will not affect our unwavering pledge to step forward in the first instance to clean up the spill and pay all legitimate claims in an efficient and fair manner.”

In total more than £56bn has been wiped off the value of BP’s shares since the explosion and the company has cancelled its dividend payments for the rest of the year.

© Fair Investment Company Ltd