BP Says It Will Pay Advance Income-Loss Claims In July

7th Jul 2010 00:26

DOW JONES NEWSWIRES BP PLC (BP, BP.LN) said Wednesday it would issue advance payments in July to workers on the Gulf Coast who have lost income because of the oil spill in the Gulf of Mexico. Separately, the oil giant said the rate at which it captured oil from its broken deep-water well in the Gulf held steady Wednesday morning. BP had paid estimated amounts to the workers in May and June, but July's payments will be based on actual monthly income rather than the estimates. Those who provided documentation will received checks on their actual losses. Those who haven't documented their income claims will get $1,000 and can receive a supplemental payment if they later show proof of having lost a greater amount. Documentation can include tax returns, trip tickets or pay stubs. The company said it took into account seasonality in the fishing and seafood industry in figuring out monthly income due. BP said it retrieved 12,255 barrels of oil during the first 12 hours of Wednesday, 8,330 barrels of which was collected and 3,925 barrels of which was flared. That total is down 2.2% from BP's previous half-day rate. A team of scientists has estimated that about 35,000 to 60,000 barrels are flowing from the broken well every day. The news comes as BP continues the process of hooking up a new oil-collecting vessel that should roughly double the company's capacity to capture oil at the site. With the new Helix Producer Vessel plugged in, BP has said it will be able to recover oil at a rate of 53,000 barrels a day. BP also is in the midst of a debate over whether it should replace the cap on the well that is allowing it to recover some of the oil flowing out of the well. It had originally planned to replace the cap with a stronger one that could capture more oil, but those plans are still up in the air, according to the Coast Guard. BP has been under intense pressure to successfully contain the spewing oil, which began in April when a deep-water drilling rig exploded and sank. The drilling of relief wells is due to be completed in August, at which point the company would pump heavy drilling fluids into the existing well to restrict the oil flow, allowing it to be plugged with cement. BP's American depositary shares were up 0.4% at $33.33 after hours. The stock has lost about 45% of its value since the oil leak began. -By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [email protected] (END) Dow Jones Newswires July 07, 2010 19:26 ET (23:26 GMT)