BP suffers major loss as oil spill costs hit 32.2 bln dlrs

27th July 2010, Comments 0 comments

BP said Tuesday it suffered a loss of 16.9 billion dollars in the second quarter in the wake of the devastating Gulf of Mexico oil spill, which is forecast to cost the company 32.2 billion dollars.

The group added in a statement that it will sell 30 billion dollars of assets over the next 18 months, as it streamlines the business, while under-fire boss Tony Hayward will be replaced by Bob Dudley in October.

"BP announced today that it has taken a pre-tax charge of 32.2-billion-dollars for the Gulf of Mexico oil spill, including the 20-billion-dollar escrow compensation fund previously announced," it said.

"The company will also tell analysts later today that it plans to sell assets for up to 30 billion dollars over the next 18 months, primarily in the upstream business, and selected on the basis that they are worth more to other companies than to BP.

"This portfolio high grading will leave the company with a smaller but higher quality exploration and production business."

© 2010 AFP

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