BP oil spill: costs rise as storm approaches
Updated on 28 June 2010
The total costs of the clean-up of the Gulf of Mexico oil spill rise to $100,000 a day, as BP warns of approaching tropical storm Alex. Science correspondent Julian Rush says there is a real fear the storm may reach hurricane force.
The oil giant warned that waves created by the tropical storm may impact its clean up operation of the region.
The warning comes amid reports that residue of the oil spill has now reached tourist beaches in Mississippi.
Waves as high as 12 feet from the storm are expected to delay BP's plans to add more oil-siphoning capacity to the gushing leak.
Channel 4 News science correspondent Julian Rush said: "There is a real fear it could reach hurricane force but it is expected to mark landfill south west of the spill."
Forecasters said Alex was moving away from Mexico's Yucatan Peninsula.
Key to the clean-up is the ongoing drilling of two relief wells, Rush said, with one well now left with just 1500 feet to go.
BP said on Monday that the total bill for cleaning up the oil spill was up from Friday's $2.35bn to $2.65bn (£1.76bn) - the highest average daily increase in costs so far.
The costs include capping the well, the continued drilling of the relief well, grants paid to Gulf states, federal costs and compensation to those affected.
More than 80,000 claims for compensation have been submitted to the company with 41,000 payments, totalling $128m, being made. After a meeting at the White House, BP agreed to set up a $20bn fund to cover costs of those affected by the spill.
BP shares rose more than 3 per cent in trading on Monday, after sliding to a 14-year low on Friday on fears over hurricane warnings.
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BP said today a relief well currently being drilled was still on track with reports suggesting work could be finished by mid-July. BP remains confident that the relief well will end the long-running crisis and "permanently kill the well", a spokesperson told Channel 4 News.
The relief well, which began being drilled on 2 May, has reached a depth almost 1,500 feet from the "intercept depth" of 18,000 feet. Experts have cautioned that the chances of failure remain high due to the logistic difficulties of drilling thousands of foot under water.
BP's chief executive Tony Hayward passed control of the spill disaster to one of BP's US directors, Bob Dudley, last week amid criticism over his handling of the spill.
Mr Hayward is expected to meet with officials in Russia today to discuss BP's operations in the country. Earlier, Russian Deputy Prime Minister Igor Sechin told Reuters that Mr Hayward was about to resign - a claim quickly denied by BP.
Yesterday US President Barack Obama and Prime Minister David Cameron discussed BP's problems at the G20 summit in Canada where the leaders agreed that the company should meet its oil spill obligations.
A Downing Street statement said the leaders also agreed that it was in the interests of both countries for BP to remain a strong and stable company.
