3rd UPDATE: US Gives BP 48 Hours To Devise Better Spill Plan

12th Jun 2010 23:15

(Adds new BP response to U.S. call for more action, in fourth paragraph.) By Andrew Morse Of DOW JONES NEWSWIRES The U.S. has given BP PLC (BP) two days to devise a more aggressive plan for containing oil leaking from its damaged deepwater well into the Gulf of Mexico, ratcheting up pressure on the oil giant as tension surrounding the spill grows. More capacity to control the leak was "urgently needed" and BP's current plans do not provide enough redundancy measures, U.S. Coast Guard Rear Admiral James Watson told the company in a letter on Friday that was released publicly on Saturday. Watson gave BP 48 hours to come up with a new plan to deal with the leak, which is now believed to be spewing as much as 40,000 barrels a day--roughly twice previous estimates--into the Gulf. "I am concerned that your current plans do not provide for maximum mobilization of resources to provide the needed collection capacity consistent with the revised flow estimates," Watson wrote. "I am also concerned that your plan does not go far enough to mobilize redundant resources in the event of an equipment failure with one of the vessels or some other unforeseen problem." BP spokesman Mark Proegler said the company had received the letter and was reviewing it. "We will be responding directly to him regarding containment plans and will work directly with the Coast Guard to keep the public informed of any changes to the process," Proegler wrote in an email. The new demand comes as tension surrounding the ecological and economic disaster mount. Also Saturday, U.S. President Barack Obama told British Prime Minister David Cameron in a phone call that his sharp criticism of BP was "nothing to do with national identity," Downing Street said. Obama also stressed that he had "no interest" in undermining the British oil giant and made clear he saw it as a global company, amid fears that his rhetoric was stoking an anti-British backlash over the Gulf of Mexico oil spill. A spokeswoman for the prime minister's Downing Street office said Obama and Cameron spoke for more than 30 minutes. The president has also requested a meeting with BP's top executives on Wednesday. The leak has captured headlines since the Deepwater Horizon drilling rig, owned by Transocean Ltd. (RIG) exploded on April 20, killing eleven workers. Initial efforts to stem the spew of oil were unsuccessful, leading to criticism of both the company and the U.S. Officials in charge of overseeing the clean-up efforts. Watson's letter to BP follows the company's submission of plans for several multi-stage systems that will allow it to collect greater amounts of oil from the site. The most effective of the systems would collect an estimated 40,000 to 50,000 barrels a day and could be completed in mid-July, Doug Suttles, chief operating officer of the BP America unit's exploration and production operations, said in the letter, dated June 9. On Friday, BP collected 15,550 barrels of oil from the leaking well, roughly in line with previous days. In a brief statement on its website, BP also said it had collected a total of 104,300 barrels of oil from the ruptured well since a new containment system was put in place to help corral one of the worst oil spills in history. The London-based oil giant said "operations were stable." On Friday, U.S. Coast Guard Admiral Thad Allen, who is overseeing the government's response team, said BP hopes to increase its daily collection rate to 40,000 to 50,000 barrels a day by the end of the month or early July. -By Andrew Morse, Dow Jones Newswires; 415-439-6402; [email protected] -0- (MORE TO FOLLOW) Dow Jones Newswires June 12, 2010 18:15 ET (22:15 GMT)