MARKET TALK: Oil Spill To Cost BP $39 Billion - Citi

15th Jul 2010 10:04

0904 GMT [Dow Jones] The Gulf of Mexico oil spill will eventually costs BP (BP) $39Bln, spread out over the next three years, says Citigroup. The gross costs of the spill will be around $50Bln, but after accounting for tax deductions and the share of costs borne by BP's partners in the well, the net cost is just under $39Bln, it says. Citi expects BP to be fined around $3,500 per barrel spilled under the clean water act, less than the $4,300 maximum allowed because the company has been so proactive in paying compensation, it adds. Gives buy rating, 590p price target. Shares -0.1% at 401p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 15, 2010 05:04 ET (09:04 GMT)