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Spill costs up to $2.65B; CEO not resigning

June 28, 2010 12:00:00 AM PDT
BP says its mounting costs for capping and cleaning up the massive oil spill in the Gulf of Mexico have reached $2.65 billion. The company is also refuting reports out of Russia that CEO Tony Hayward is resigning. The billion-dollar figure includes costs from spill response, containment, relief well drilling, grants to Gulf states, claims paid and federal costs.

BP's expenses have climbed $100 million per day over the weekend, according to a Monday SEC filing. Also, engineers are warily eyeing a tropical storm heading for Mexico. Tropical Storm Alex is expected to miss the oil spill area, but it could still hinder containment efforts by creating disruptive waves and winds.

The oil giant has lost more than $100 billion in market value since the deep-water drilling platform it was operating blew up April 20, killing 11 workers and starting the massive leak that has fouled the coastline in four states. BP PLC stock fall 6 percent Friday in New York to a 14-year low.

British-based BP rushed to deny the report by Russia's state RIA Novosti news agency that a senior Russian Cabinet official had said Hayward was expected to resign as chief executive.

BP spokeswoman Carolyn Copland in London said the report "is definitely not correct." Sheila Williams, also in London, said, "Tony Hayward remains chief executive."

"They are mistaken," U.S.-based BP spokesman Mark Proegler said of the Russian report.

BP said it had received more than 80,000 claims and made almost 41,000 payments, totaling more than $128 million.

BP says the figure does not include a $20 billion fund for Gulf damages it created this month.

Latest Developments:

  • In the Gulf, Tropical Storm Alex is predicted to strengthen and possibly become a hurricane Monday or Tuesday as its center crossed open water from Yucatan to Mexico's northeastern coast. Though its course is far from the oil spill area, Alex will still generate waves up to 15 feet high and winds of 20 to 30 mph.
  • It was a rocky start to the week after BP PLC stock fall 6 percent Friday in New York to a 14-year low. BP shares gave up some ground in London after the Hayward report emerged from Russia. But they were still up a fraction at 306.75 pence ($4.62) . BP's U.S. shares gained about 2 percent in premarket trading.
  • The Organization of the Petroleum Exporting Countries called on the United States to reconsider a ban on new deep-water drilling that could hold back oil supplies - despite safety concerns in the wake of the massive oil spill. OPEC says offshore drilling is an important source of oil and any ban would be too hasty when the cause of the Gulf of Mexico spill is still unclear.
  • As the oil spill continues to gush, U.S. seafood suppliers are turning to Asia to ensure seafood supply for Americans, but some of those overseas cupboards are low themselves. Several countries in the world's top shrimp-producing region are struggling to satisfy their own appetites for shrimp because of disease, drought and the economic crisis. The oil spill is one more factor driving prices skyward, sending a worldwide ripple through an already tight shrimp market.
  • The Associated Press contributed to this report.

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