AT A GLANCE: Judge Rejects Drilling Ban During Appeal; BP Cap Back In Place

24th Jun 2010 18:41

THE NEWS: The U.S. federal judge who overturned a six-month offshore drilling bank denied Thursday an Obama administration motion to let the moratorium remain in place during the appeals process. Meanwhile, BP PLC (BP, BP.LN) resumed collection efforts after Wednesday's technological setback, and the oil company reportedly is a weighing the sale of assets in Latin America to bolster its coffers. THE DETAILS: U.S. District Court Judge Martin Feldman in New Orleans rejected Obama administration efforts to maintain the drilling moratorium while it appeals his ruling. President Barack Obama imposed the ban in response to the Gulf of Mexico oil spill. In denying the appeal, Feldman cited "the same reasons given" in his Tuesday ruling striking down the drilling ban: that the administration hadn't provided enough facts, and the administration's decision "simply cannot justify the immeasurable effect" on the plaintiffs, the local economy, the Gulf region and the domestic energy market that relies on oil. THE NEXT STEP: The Obama administration is expected to file an emergency motion with the 5th Circuit Court of Appeals, asking the panel to keep the moratorium in place until the legal fight over Feldman's injunction is resolved. An official in the 5th Circuit clerk's office has said the court has three-judge panels on standby to handle emergency motions. COLLECTION EFFORTS: BP's collection efforts dropped Wednesday after the company spent much of the day reinstalling a containment cap on the leaking well. A robot submarine collided with the cap, dislodging it. BP ended up collecting 16,830 barrels of oil, down nearly 40% from the previous day. SKY: BP MULLS SELLING ASSETS IN LATIN AMERICA: BP is considering offloading some assets in Latin America, Sky TV reported Thursday. The report said the biggest piece being considered is a $9 billion stake in Argentina-based Pan America Energy. Additionally, the report said that BP is in the early stages of evaluation and no decisions have been made. The move is the latest step in BP's efforts to shore up its finances in the face of possible liabilities stemming from the Gulf oil spill, Sky said. MARKET ACTION: BP's American depositary receipts recently were down 2.5% to $28.92 while major U.S. stock indexes were down around 1%. The London-listed shares closed down 2.5%. Traders continue to fret about the uncertainty surrounding BP's liabilities and its containment efforts. Meanwhile, the cost to insure BP's bonds fell modestly from Wednesday but remained elevated, according to data from Markit. For more coverage of the oil spill, please search under the code BP for these stories: -Judge Denies U.S.'s Motion To Keep Drilling Ban During Appeal -BP:Total Oil Recovered On Wednesday About 16,830 Barrels -BP Mulls Selling String Of Assets In Latin America - Sky News -BP WATCH: BP's Shares Fall As Worries Over Uncertainty Weigh -WSJ: Hornbeck Offshore Had Low Profile Before Challenging Drilling Ban -Caribbean Tropical Disturbance Hasn't Increased In Strength-NHC (END) Dow Jones Newswires June 24, 2010 13:41 ET (17:41 GMT)