Issues in Depth

BP chief vows to stay

VENICE, La./PENSACOLA BEACH, Florida (Reuters) - BP Chief Executive Tony Hayward said he did not plan to quit over the massive Gulf of Mexico oil spill, as the energy giant's bid to contain the crude appeared to reach a turning point. | Video

La./PENSACOLA BEACH, Florida (Reuters) - BP Chief Executive Tony Hayward said he did not plan to quit over the massive Gulf of Mexico oil spill, as the energy giant's bid to contain the crude appeared to reach a turning point.

U.S. | Green Business | Gulf Oil Spill

Public and political pressure has been mounting on London-based BP to cap its gushing seabed oil well and take full financial responsibility for the cleanup and damage caused to Gulf coast fisheries, wildlife and tourism.

Hayward became a lightning rod for Americans' anger with BP when he told struggling Gulf Coast residents last month, "I would like my life back," a remark widely seen as insensitive and which rekindled speculation he may not survive the crisis.

"It hasn't crossed my mind. It's clearly crossed other people's minds but not mine," Hayward told The Sunday Telegraph in an interview when asked if he had thought of stepping down as head of BP due to the outcry over the oil spill.

Hayward told BBC television he had the full support of BP's board and the company's balance sheet was strong, despite the steep fall in its share price as a result of the disaster.

"BP is running very well today. It's generating a lot of cash. It will generate $30 to $35 billion of free cash flow this year ... We have the financial strength to see through this," he said told the BBC.

BP also seemed to make headway with its latest attempt to halt the spill -- a containment dome fixed atop the well.

Hayward said the dome was capturing a large proportion of the oil leaking from the oil and he hoped it would soon be able to channel the "vast majority" of the crude to the surface.

"The containment cap is producing around 10,000 barrels of oil a day to the surface which is being processed on the surface," Hayward told the BBC.

The figure of 10,000 barrels (419,000 gallons/1.59 mln liters) represented a little more than half of the top estimates of oil leaking from the damaged well each day but it seemed like progress in a crisis now 48 days old.

The maximum collection rate from the small containment device on the ruptured well about one mile under the ocean's surface was estimated at about 15,000 barrels per day by U.S. Coast Guard Admiral Thad Allen, who is heading up the federal oil spill relief efforts.

"We are optimizing the operation," Hayward said. "We have a further containment system to implement in the course of this coming week which will be in place by next weekend. So when these two are in place we would very much hope to be containing the vast majority of the oil."

Allen, in an interview with CNN that was to be one of his four appearances on U.S. television news show on Sunday, acknowledged the progress but said more needs to be done.

"We're making the right progress," he said. "I don't think anybody should be pleased as long as there's oil in the water ... so I would say progress has been made but nobody should be pleased until a relief well is done."

DEAD BIRDS

The Obama administration has delayed plans to increase offshore drilling as a result of the spill.

Oil began leaking from the well after an April 20 rig explosion that killed 11 workers. U.S. government scientists estimate that between 12,000 and 19,000 barrels of oil a day have been pouring into the Gulf of Mexico since then.

The company faces a criminal probe, lawsuits, dwindling investor confidence and growing questions about its credit-worthiness. Its share price has been stripped of about one-third of its value since the crisis began.

BP said it has spent $1 billion on the spill and has vowed to pay all legitimate claims of those harmed by the disaster. It has delayed a decision on whether to suspend payment of its quarterly dividends, despite U.S. political pressure to do so.

After contaminating wetland wildlife refuges in Louisiana and barrier islands in Mississippi and Alabama, the black tide of crude oil has taken aim at some of the famous white beaches of Florida, whose economy is heavily dependent on tourism.

Fully one-third of the Gulf's federal waters, or 78,603 square miles (202,582 square km), remains closed to fishing, and the toll of dead and injured birds and marine animals, including sea turtles and dolphins, is climbing.

"BP can't stop it. I don't think the Navy or the military can stop it," said Michael Penzone, a businessman in Pensacola, Florida.

(Additional reporting by Chris Baltimore in Houston, Pascal Fletcher in Miami, Jeff Mason in Kenner, La., Kelli Dugan in Orange Beach, Alabama, Sarah Irwin in Buras, Louisiana, Jane Ross in Pensacola and Michael Roddy in London; Writing by Ros Krasny; Editing by Paul Simao and Bill Trott)

http://www.reuters.com / Bulgaria Today

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