BP reported a significant drop in the costs related to last year’s devastating Gulf of Mexico oil disaster in the first quarter as the UK oil group sought to rebuild its oil and gas exploration operations.
The company, which last week launched legal claims against three companies involved with the Deepwater Horizon drilling rig which blew up killing 11 men, said non-operating costs related to the Gulf of Mexico disaster were $384m in the three-month period to the end of March compared to more than $1bn in the fourth quarter. The total charge last year was $40.9bn.
Shares in Rosneft were up 1.7 per cent on Wednesday, boosted by a buyback plan that is widely seen in Russia as preparation for the state-controlled group’s planned controversial stock- swap with BP.The modest $200m stock buyback announced late on Tuesday is hardly a game-changer in the context of the multi-billion dollar dispute raging around the proposed Rosneft-BP deal and the opposition generated from BP’s existing Russian partner, AAR. But, given the timing, it looks like Rosneft is increasing the pressure to try to secure a deal.