BP installs new cap on leaking well

13th Jul 2010 07:24

Hopes are rising BP is near to stemming the flow of oil spilling into the Gulf of Mexico after a new 75-tonne steel cap was lowered over the damaged well late last night.Reports suggested that for a brief period shortly after the new cap was installed oil stopped leaking from the Macondo well, though it resumed soon after through a valve to relieve a pressure build-up.BP will now start a 48-hour test of the new cap, during which it says the oil could be stopped again though this does not indicate that the oil leaking from the well has been stopped for good."It is expected, although cannot be assured, that no oil will be released to the ocean for the duration of the test. This will not however be an indication that flow from the wellbore has been permanently stopped," the statement said.The drilling of a relief well will continue through the period and "remains the sole means to permanently seal and isolate the well," BP added.The new cap replaces a smaller version that has been in place since June and had captured some of the estimated leakage of 60,000 barrels of oil a day.BP shares jumped by nearly 10% yesterday on a combination of bid talk, asset sale rumours and hopes it might soon permanently cap the leak.