BP (NYSE:BP) has billed Mitsui $480 million for their share of the oil cleanup costs caused by the oil spill. Mitsui has not paid and it remains unclear if they actually will or not. The company, "will study and determine whether or not it should pay," said chief financial officer Junichi Matsumoto.
BP's soon to be chief executive officer Robert Dudley, has stated that he has full intentions to "vigorously" pursue the partners. The company has incurred charges of $3.2 billion relating to the leak. Mitsui owns a 10 percent stake while Anadarko owns 25 percent.
Anadarko's stance has remained the same from the beginning, we're not paying. Anadarko's chief executive officer Jim Hackett said, "Under the joint operating agreement, no party is required to pay any cost or damages to the operator to the extent that they are incurred as a result of the operators gross negligence or willful misconduct."
Showing posts with label Oil Cleanup Costs. Show all posts
Showing posts with label Oil Cleanup Costs. Show all posts
Wednesday, August 4, 2010
Wednesday, July 14, 2010
Mitsui Tells BP (NYSE:BP), We're Not Paying Bill
It seems Mitsui is following suite with Anadarko telling BP (NYSE:BP), we're not paying the bill. BP sent the bill last month requesting $111 million for oil cleanup costs and legal claims associated with the spill.
Mitsui owns a 10 percent stake in the Macondo well, Anadarko's stake is 25 percent. Normally all companies owning a stake in a well are required by law to pay their share, if there is an oil spill. It will be some time before BP sees any money from their partners. They are claiming legally they are absolved from all financial responsibility. Due to the fact BP was negligent and reckless in their behavior. Leading up to the explosion and resulting in the sinking of the Deepwater Horizon.
A Mitsui spokesman said while the cause of the accident continues to be investigated by the government, they are issuing an independent review into the reimbursement claims. He said,
" Therefore, we are withholding reimbursements of BP's invoices, other than with respect to the non-incident costs at this time."
BP spokesman, Andrew Gowers said, " We are disappointed that they too are failing to live up to their responsibilities. We won't be distracted from fulfilling our own." Gowers wouldn't comment on weather BP would try and force them to pay. He did say, if the company wanted to pursue such an act, according to the joint operating agreement, they would have to pursue any disputes through an outside arbitrator.
Mitsui owns a 10 percent stake in the Macondo well, Anadarko's stake is 25 percent. Normally all companies owning a stake in a well are required by law to pay their share, if there is an oil spill. It will be some time before BP sees any money from their partners. They are claiming legally they are absolved from all financial responsibility. Due to the fact BP was negligent and reckless in their behavior. Leading up to the explosion and resulting in the sinking of the Deepwater Horizon.
A Mitsui spokesman said while the cause of the accident continues to be investigated by the government, they are issuing an independent review into the reimbursement claims. He said,
" Therefore, we are withholding reimbursements of BP's invoices, other than with respect to the non-incident costs at this time."
BP spokesman, Andrew Gowers said, " We are disappointed that they too are failing to live up to their responsibilities. We won't be distracted from fulfilling our own." Gowers wouldn't comment on weather BP would try and force them to pay. He did say, if the company wanted to pursue such an act, according to the joint operating agreement, they would have to pursue any disputes through an outside arbitrator.
Tuesday, June 22, 2010
Shell (LSE:RDSA) Penalized By Bond Market, 2.75 Billion Debt Offering
In a 2.75 billion dollar debt offering, Shell (LSE:RDSA) received penalties by the bond market. Anadarko's notes saw a significant decline as fear mounts that profits will fall across the oil industry due to the worst U.S. oil spill in history.
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
Monday, June 21, 2010
Stock Prices, Oil Futures: BP (NYSE:BP) and Anadarko (NYSE:APC)
BP (NYSE:BP) stock prices drop as many are wondering about oil futures, this drop is due to Anadarko Petroleum (NYSE:APC) making it clear that they are refusing to pay their share, being 25 percent of the oil cleanup costs. Typically in a situation like what has happened in the Gulf of Mexico, all companies involved that have a stake in the company are liable. By law, the only exception is if BP were to be found negligent. Then Anadarko may be released of any liability and would not have to pay anything.
BP shares were down 4.4 percent to $30.34. That's almost a 50 percent drop from where they closed on April 20th. While Anadarko's shares saw a jump in trading of 1.3 percent.
Monday morning BP stated that the oil spill response had reached 2 billion. They said they've paid out over 32,000 claims of the more than 65,000 claims they've received. In excess of $105 million. In a statement BP said, "it is too early to quantify other potential costs and liabilities associated with the incident."
Mike Tosaw, investment advisor representative of Know Your Options Incorporated stated,
"over the short term we're not touching it with a 10 foot poll," although he does expect it to make it over the long term. Tosaw continues, "I personally am not putting my money where my mouth is on that. There's just too much uncertainty with it."
BP shares were down 4.4 percent to $30.34. That's almost a 50 percent drop from where they closed on April 20th. While Anadarko's shares saw a jump in trading of 1.3 percent.
Monday morning BP stated that the oil spill response had reached 2 billion. They said they've paid out over 32,000 claims of the more than 65,000 claims they've received. In excess of $105 million. In a statement BP said, "it is too early to quantify other potential costs and liabilities associated with the incident."
Mike Tosaw, investment advisor representative of Know Your Options Incorporated stated,
"over the short term we're not touching it with a 10 foot poll," although he does expect it to make it over the long term. Tosaw continues, "I personally am not putting my money where my mouth is on that. There's just too much uncertainty with it."
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