Work at MC252, otherwise known as the Macondo Prospect and now infamous as the location of one of the worlds largest oil spills, today continues at a frantic pace. BP (LON:BP.) has, over the past day, been pressure testing the ‘top hat’ that lies on the ocean floor in advance of a potential ‘top kill’ (lots of ‘tops’ then!), injecting the well with 50,000lbs of heavy drilling fluids and cement to try and plug the well, which at current estimates is spewing over 5000 barrels of oil a day into the Gulf (although some say it could be 3 or 4 times more than this.) The decision will be based on today’s results, and the outcome of the procedure could well define the near-future of the companies involved. BP Chief Executive Officer Tony Hayward said “So far, it’s looking OK but we haven’t got all the data we need.” ‘Top kill’ procedures have been know to work above ground, but have never been attempted at 5000 feet below sea level. Scientists are divided as to the success, with most putting BP’s chances of success at around 60-70%. However, as far as BP, Transocean and Halliburton are concerned, failure is not an option this time around. Tensions are mounting, residents are frustrated and the White House is losing patience. President Obama is reported as saying this morning to ‘Plug the damn hole’. Sen. Bill Nelson, D-Florida has suggested that “If the thing is not fixed today, the President doesn’t have a choice, and he better go in and completely take over, perhaps with the military in charge,”.
It is not just control of the operation that BP and associated parties stand to loose. Lloyd’s of London has updated estimates that put the net claims against BP of between $300 million and $600 million (£210 million and £420 million). This news emerged as BP tried to claim up to $700 million through a policy held by Transocean. However, 38 separate Lloyds underwriting syndicates, plus a string of other international insurers affected by the disaster, rejected BP’s claim. They claim that BP’s lease contract from Transocean specified that the insurers would only be responsible for damage to the rig itself, and not for pollution caused by a potential leak from itOn Monday BP said that the cost of the clean-up had hit $760 million. It seems that White House patience…
