MARKET TALK:BP Has Ability To Fund $20B Escrow Account-Analyst

16th Jun 2010 17:40

[Dow Jones] A $20 billion escrow account is large in proportion, but it's certainly something BP PLC (BP) is able to fund, says Jason Gammel, analyst at Macquarie Research. "Regardless how the payments mechanically happen, BP has the financial strength to fund it," Gammel says. "They have enough cash flow and quality assets that will allow it to fund that type of liability." The company doesn't need to stop its dividend to finance the escrow account, Gammel said. The White House and BP agreed Wednesday to establish a $20 billion, independently administered compensation fund for victims of the Gulf oil spill. The leak resulted after Transocean Ltd.'s (RIG) Deepwater Horizon rig, which was leased by BP, exploded and sank in April. (Isabel Ordonez, 713-314-6090, [email protected]) (END) Dow Jones Newswires June 16, 2010 12:40 ET (16:40 GMT)