BP looks for investors, shares bounce

5th Jul 2010 07:36

Shares in BP closed almost 4% higher on Monday on reports that the governments of Kuwait, China and Singapore could inject funds under a £6bn plan designed to shore up the oil group's finances in the wake of the Gulf disaster. The cost of the clean-up has now exceeded $3bn, up from $2.65bn a week ago.Kuwaiti newspaper Al-Jarida reported the Kuwait Foreign Petroleum Exploration Company was examining the possibility of investing in BP's oil fields in Egypt, Yemen and east Asia.Libya is said to be interested in taking a stake, while reports at the weekend suggested the company may also talk to groups in Singapore, China and possibly Russia.The fund raising could involve a bond issue, rights issue or a sale of a stake. Another option is for BP to sell some of its assets. As well as the Kuwaiti interest in some Middle East fields, Gazprom is said to be looking at assets in the former Soviet Union, while last week there was talk that Argentine operation Pan-American could be on the block.BP's efforts to stem the leaking well on the Macondo have seen the total volume of oil collected or flared by the containment systems rise to 585,400 barrels, up from 435,600 barrels a week ago. The amount of oil skimmed from the surface is up to around 673,497 barrels (23.5m gallons), up from 652,000 barrels a week earlier.Work on the first floating riser containment system planned to be connected to the Helix Producer was delayed by heightened sea states caused by Hurricane Alex as it passed through the Gulf of Mexico. The floating riser system is expected to be available to begin first operations towards the end of the week.Plans also are being developed for additional containment capacity and flexibility. These projects are currently anticipated to begin operations around mid to late July.Drilling on the first relief well, which started May 2, had reached a depth of 17,725 feet on July 4.The second relief well, which started May 16, has now reached a measured depth of 13,871 feet. Both wells are still estimated to take about three months to complete from commencement of drilling.