David Cameron issued his strongest support for BP yesterday ahead of a crucial show-down with President Obama. As shares in the oil giant plunged to a 14-year low, he warned the U.S. against the 'destruction' of a company as vital to its interests as to Britain's. It came as the under-fire firm said the cost of the Gulf of Mexico oil disaster had reached £1.6billion. The stock fell more than six per cent to just above 300p with no sign of an end to BP's woes in sight. Mr Cameron said: 'I want it to be a strong and stable company for the future, not just in Britain's interests.' Chief executive Tony Hayward insisted the oil company's health had stabilised and was in the 'intensive care' ward when he met company staff in Sunbury. But investors continued to head for the exit, despite assurances in today's update that progress on the relief well and measures to improve the capture of oil from the leaking well were on track. BP said it was putting in place another support system for the containment cap within the next week. The group also confirmed its two relief wells - intended to kill the leaking well - are set to be completed within three months of the date work began, following reported concerns in America they could take longer. (Daily Mail)Saturday, 26 June 2010
BP shares hit 14-year low as clean-up cost soars
David Cameron issued his strongest support for BP yesterday ahead of a crucial show-down with President Obama. As shares in the oil giant plunged to a 14-year low, he warned the U.S. against the 'destruction' of a company as vital to its interests as to Britain's. It came as the under-fire firm said the cost of the Gulf of Mexico oil disaster had reached £1.6billion. The stock fell more than six per cent to just above 300p with no sign of an end to BP's woes in sight. Mr Cameron said: 'I want it to be a strong and stable company for the future, not just in Britain's interests.' Chief executive Tony Hayward insisted the oil company's health had stabilised and was in the 'intensive care' ward when he met company staff in Sunbury. But investors continued to head for the exit, despite assurances in today's update that progress on the relief well and measures to improve the capture of oil from the leaking well were on track. BP said it was putting in place another support system for the containment cap within the next week. The group also confirmed its two relief wells - intended to kill the leaking well - are set to be completed within three months of the date work began, following reported concerns in America they could take longer. (Daily Mail)