DOJ, BP Finalize Oil Spill Escrow Fund

U.S. Associate Attorney General Tom Perrelli issued the following statement this morning regarding the Department of Justice (DOJ) and BP finalizing plans to establish a $20 billion fund to award claims made by individuals and businesses impacted by the Gulf oil spill:

“Today, the department announced that it had completed negotiations to establish a $20 billion fund to provide the necessary resources to those suffering from the effects of the oil spill in the Gulf of Mexico. We are pleased that BP made an initial contribution and has taken an important step toward honoring its commitment to the President and the residents and business owners in the Gulf region. We have made clear that the company still needs to ensure that the necessary funds will be available if something happens to the subsidiary that established the trust and we look forward to completion of an appropriate security arrangement in the near future.”

Thad Allen Statement On Static Kill

“Based on the successful completion of the static kill procedure and a positive evaluation of the test results, I have authorized BP to cement its damaged well. I made it clear that implementation of this procedure shall in no way delay the completion of the relief well.”

BP VP: Static Kill Has Better Chance of Success Than Top Kill

BP Senior Vice President, Kent Wells, said that he expects the planned ‘static kill’ to begin on Tuesday, and that the operation will fare better than the previous attempt to stop the oil, ‘top kill,’ because the cap prevents mud from escaping out the top of the well.  The ‘static kill’ oeration will take several days to complete, said Wells.

By Philip Bunnell

BP Reports $17 Billion Loss In Second Quarter

BP lost more than $17 billion dollars in the second quarter of 2010, the company is reporting. Incoming CEO Robert Dudley, however, is optimistic about the future of the oil giant.

The New York Times quoted Dudley as saying he does “not underestimate the nature of the task ahead, but the company is financially robust, with an enviable portfolio of assets and professional teams that are among the best in the industry.”

Since announcing that Dudley, who will become the company’s first ever American CEO, will take over, BP has also announced that $32.2 billion has gone toward dealing with the Gulf spill disaster, and that the company plans to sell up to $30 billion in assets to limit the financial damage in order to ensure financial stability for the coming months…

- Alexa Gitler

BP's Hayward To Receive $18 Million Payout

Tony Hayward announced yesterday that he’ll be stepping down from his position as CEO of BP in October. He will be replaced by Robert Dudley, who will be BP’s first American CEO.

The New York Times has reported that Hayward is stepping away with a payout of $18 million, and with millions more in BP shares in an incentive plan.

- Brandon Kosters