BP (NYSE:BP) will probably start requesting permission to resume drilling in the Gulf of Mexico, according to Mark Gilman, an analyst with The Benchmark Company, who also believes after scrutiny, they will be approved to go ahead.
That's why the other companies have been allowed to resume drilling in the Gulf, as it was a test of public opinion and getting people used to things being safer in the industry.
Gilman said about BP, which is his favorite name in the space, "We're pretty comfortable that things are going in the right direction, and we're even more comfortable that the market hasn't priced it right yet."
He added that "although it might be considered heretical, it's my belief that, in fairly short order, BP will apply for drilling permits in the deepwater Gulf. And furthermore, I'd be surprised if, after appropriate scrutiny, they aren't approved."
BP was trading at $45.89, gaining $1.21, or 2.71 percent, as of 11:40 AM EDT. Gilman has a price target of $70 on the oil giant.
Showing posts with label Gulf Oil Spill. Show all posts
Showing posts with label Gulf Oil Spill. Show all posts
Wednesday, April 20, 2011
Friday, March 25, 2011
Chevron (CVX) Latest to Get Gulf Drilling Permit
There is no doubt the tension and unrest in the Middle East has forced the hand of the Obama administration to reward more permits to drill in the Gulf of Mexico, as they had been dragging their feet for months for no reason. Chevron (NYSE:CVX) was the latest to receive a permit to drill in the Gulf.
The federal government on Thursday approved Chevron Corp. for the first permit for completely new exploration in the Gulf of Mexico, saying the oil company had satisfied requirements to show that it could contain a subsea blowout.
It is the fifth deepwater permit since new standards were put in place after the Deepwater Horizon blowout and spill last year, but the first to drill in a new oil field.
The Bureau of Ocean Energy Management, Regulation and Enforcement issued a revised permit to drill in 6,750 feet of water 216 miles south of Lafayette, La.
Chevron closed Thursday at $105.38, dropping $0.10, or 0.09 percent.
Source
The federal government on Thursday approved Chevron Corp. for the first permit for completely new exploration in the Gulf of Mexico, saying the oil company had satisfied requirements to show that it could contain a subsea blowout.
It is the fifth deepwater permit since new standards were put in place after the Deepwater Horizon blowout and spill last year, but the first to drill in a new oil field.
The Bureau of Ocean Energy Management, Regulation and Enforcement issued a revised permit to drill in 6,750 feet of water 216 miles south of Lafayette, La.
Chevron closed Thursday at $105.38, dropping $0.10, or 0.09 percent.
Source
Russian Billionaires Win BP (BP), Rosneft Share-Swap Battle
The share swap deal between BP (NYSE:BP) and OAO Rosneft was blocked by Russian billionaires who had fought against the deal.
BP said in a statement it was disappointed by the outcome of the tribunal and that it would look to find a way to “resolve its differences” with the Russian billionaire partners in its TNK-BP joint venture. It will also apply for a ruling as to whether the share swap can proceed by itself.
BP’s partners, represented by the AAR group, claim the right for TNK-BP to pursue new opportunities in Russia on behalf of the London-based oil company. Last month, they won a court injunction to delay the deal.
The ruling is a setback for BP’s efforts to exploit one of the largest untapped oil troves. The January agreement with Russia’s state-owned oil company was part of Chief Executive Officer Robert Dudley’s strategy to revive the U.K. producer after last year’s Gulf of Mexico oil spill last year.
BP closed Thursday at $46.81, gaining $0.58, or 1.25 percent.
Source
BP said in a statement it was disappointed by the outcome of the tribunal and that it would look to find a way to “resolve its differences” with the Russian billionaire partners in its TNK-BP joint venture. It will also apply for a ruling as to whether the share swap can proceed by itself.
BP’s partners, represented by the AAR group, claim the right for TNK-BP to pursue new opportunities in Russia on behalf of the London-based oil company. Last month, they won a court injunction to delay the deal.
The ruling is a setback for BP’s efforts to exploit one of the largest untapped oil troves. The January agreement with Russia’s state-owned oil company was part of Chief Executive Officer Robert Dudley’s strategy to revive the U.K. producer after last year’s Gulf of Mexico oil spill last year.
BP closed Thursday at $46.81, gaining $0.58, or 1.25 percent.
Source
Thursday, March 24, 2011
Cameron's (CAM) BOP in BP (BP) Gulf Disaster Failed Because of Blind Shear Rams
A government report said the cause of the failure of the blowout preventer made by Cameron International (NYSE:CAM) and related to the Macondo well operated by BP (NYSE:BP), was from the inability of blind shear rams to close and seal the leaking well.
From a report commissioned by the Interior Department and Department of Homeland Security, the conclusion was, "The primary cause of failure was identified as the (blind shear rams) failing to fully close and seal due to a portion of drill pipe trapped between the blocks."
A section of pipe on BP Plc’s Gulf of Mexico well became trapped and kept the blades from cutting the pipe to stop the flow of oil, resulting in the largest U.S. offshore spill.
The blind shear rams, part of a 50-foot stack of valves called a blowout preventer, failed to “fully close and seal” the well, according to the report released Wednesday. The pipe buckled in a blast, which prevented the rams from pinching the pipe shut and allowed oil and gas to surge to the surface.
Cameron International's spokeswoman Rhonda Barnat said, “We continue to work with the industry to ensure safe operations.”
From a report commissioned by the Interior Department and Department of Homeland Security, the conclusion was, "The primary cause of failure was identified as the (blind shear rams) failing to fully close and seal due to a portion of drill pipe trapped between the blocks."
A section of pipe on BP Plc’s Gulf of Mexico well became trapped and kept the blades from cutting the pipe to stop the flow of oil, resulting in the largest U.S. offshore spill.
The blind shear rams, part of a 50-foot stack of valves called a blowout preventer, failed to “fully close and seal” the well, according to the report released Wednesday. The pipe buckled in a blast, which prevented the rams from pinching the pipe shut and allowed oil and gas to surge to the surface.
Cameron International's spokeswoman Rhonda Barnat said, “We continue to work with the industry to ensure safe operations.”
Wednesday, March 23, 2011
Exxon (XOM) Awarded Gulf Drilling Permit
Exxon Mobil (NYSE:XOM) has finally been approved a permit to resume drilling in the Gulf of Mexico by the Interior Department. It's the fourth Gulf permit awarded since the BP (NYSE:BP) Gulf oil spill.
The company was awarded the permit after it complied with new safety drilling regulations imposed by the department after the Gulf spill, including satisfying the requirement that the company be able to contain a blowout at an underwater well.
Exxon plans to use a containment system from the Marine Well Containment Co, marking the first time that a containment device was approved in a drilling permit.
The permit will allow Exxon to drill a new well in its Hadrian North project in the Keathley Canyon Block, located in nearly 7,000 feet of water about 240 miles off the Louisiana coast.
Exxon closed Tuesday at $82.56, falling $0.28, or 0.34 percent.
Source
The company was awarded the permit after it complied with new safety drilling regulations imposed by the department after the Gulf spill, including satisfying the requirement that the company be able to contain a blowout at an underwater well.
Exxon plans to use a containment system from the Marine Well Containment Co, marking the first time that a containment device was approved in a drilling permit.
The permit will allow Exxon to drill a new well in its Hadrian North project in the Keathley Canyon Block, located in nearly 7,000 feet of water about 240 miles off the Louisiana coast.
Exxon closed Tuesday at $82.56, falling $0.28, or 0.34 percent.
Source
Monday, March 21, 2011
ATP (ATPG) Lands Gulf Deepwater Drilling Permit
ATP Oil & Gas Corporation (NASDAQ:ATPG) has become only the third company to receive a permit to resume drilling in the Gulf of Mexico since the BP (NYSE:BP) oil spill.
They will begin drilling again at the Mississippi Canyon ("MC") Block 941 #4 well in the deepwater Gulf of Mexico.
T. Paul Bulmahn, ATP's Chairman and CEO, said, "This permit for the ATP Titan drilling and production platform is the first for a stationary deepwater facility since deepwater drilling was allowed to resume on February 28, 2011. The previous two permits to drill oil and gas wells approved by BOEMRE in 2011, both of them in the last 18 days, are for wells drilled by Mobile Offshore Drilling Units (MODU). We are ready and eager to return to work. ATP has always drilled safely and environmentally soundly. We are looking forward to delivering on our objectives to generate near-term production growth from these developments."
The Obama administration has been slow and lax in the issuing of permits, causing an enormous amount of pain for companies and workers in the region, as well as the communities they live in.
ATP closed Friday at $18.31, up $0.81, or 4.63 percent.
They will begin drilling again at the Mississippi Canyon ("MC") Block 941 #4 well in the deepwater Gulf of Mexico.
T. Paul Bulmahn, ATP's Chairman and CEO, said, "This permit for the ATP Titan drilling and production platform is the first for a stationary deepwater facility since deepwater drilling was allowed to resume on February 28, 2011. The previous two permits to drill oil and gas wells approved by BOEMRE in 2011, both of them in the last 18 days, are for wells drilled by Mobile Offshore Drilling Units (MODU). We are ready and eager to return to work. ATP has always drilled safely and environmentally soundly. We are looking forward to delivering on our objectives to generate near-term production growth from these developments."
The Obama administration has been slow and lax in the issuing of permits, causing an enormous amount of pain for companies and workers in the region, as well as the communities they live in.
ATP closed Friday at $18.31, up $0.81, or 4.63 percent.
Tuesday, March 15, 2011
BP (BP) Settles with Widow of Oil Rig Worker
BP (NYSE:BP) has reportedly settled with the widow of Deepwater Horizon oil rig worker Keith Blair Manuel, who perished when the rig exploded and dropped to the bottom of the Gulf of Mexico.
Per terms of the agreement, U.S. District Judge Carl Barbier of New Orleans today agreed to dismiss Melinda Anne Becnel’s suit against BP in exchange for the settlement.
Terms of the settlement weren't disclosed, which lawsuit didn't include the owner of the oil rig - Transocean (NYSE:RIG).
Claims made by Becnel against BP were also dropped, as well as other oilfield contractors.
This is only one of over 350 lawsuits filed against the oil giant and other companies connected to the Macondo Well.
BP closed Monday at $45.07, down $0.68, or 1.49 percent.
Per terms of the agreement, U.S. District Judge Carl Barbier of New Orleans today agreed to dismiss Melinda Anne Becnel’s suit against BP in exchange for the settlement.
Terms of the settlement weren't disclosed, which lawsuit didn't include the owner of the oil rig - Transocean (NYSE:RIG).
Claims made by Becnel against BP were also dropped, as well as other oilfield contractors.
This is only one of over 350 lawsuits filed against the oil giant and other companies connected to the Macondo Well.
BP closed Monday at $45.07, down $0.68, or 1.49 percent.
Thursday, March 10, 2011
BP (BP) Management At Fault Says Exxon's (XOM) Tillerson
At a company analyst meeting in New York, Exxon Mobil (NYSE:XOM) CEO Rex Tillerson blamed the BP (BP) oil spill disaster on the management of the company, saying it was primarily their fault.
Tillerson said, "It was a breakdown of management oversight. When you do things the proper way these kind of things do not happen."
This was after BP Chief Executive Officer Robert Dudley said at a recent energy conference that the Gulf oil spill wasn't a "one-in-a-million occurrence" and industry-wide changes were needed.
Tillerson blasted those comments, saying Dudley did the industry "a great disservice" in making those assertions.
Dudley continues to say BP didn't act in a negligent manner, even as criminal and civil investigations are being opened.
BP closed Wednesday at $47.41, down $0.40, or 0.84 percent. Exxon closed at $84.38, down $0.22, or 0.26 percent.
Tillerson said, "It was a breakdown of management oversight. When you do things the proper way these kind of things do not happen."
This was after BP Chief Executive Officer Robert Dudley said at a recent energy conference that the Gulf oil spill wasn't a "one-in-a-million occurrence" and industry-wide changes were needed.
Tillerson blasted those comments, saying Dudley did the industry "a great disservice" in making those assertions.
Dudley continues to say BP didn't act in a negligent manner, even as criminal and civil investigations are being opened.
BP closed Wednesday at $47.41, down $0.40, or 0.84 percent. Exxon closed at $84.38, down $0.22, or 0.26 percent.
Tuesday, March 1, 2011
BP (BP), Transocean (RIG) Divorce Would be Costly
With a lot of stress on the business relationship between BP (NYSE:BP) and Transocean (NYSE:RIG), it could cost the two potentially hundreds of millions if the relationship falls apart.
Transocean owned the Deepwater Horizon drilling rig, operated by BP, which exploded and started the Gulf oil spill.
Even though the Gulf incident ended up costing Transocean about $137 million, they see a disintegrating relationship with BP as much more costly.
In a filing with the SEC, Transocean said BP accounted for about 10 percent of its overall $9.6 billion in revenue for 2010. Existing agreements are valued at almost three times that, coming to $2.9 billion.
In the filing Transocean called BP its "most significant customer," and the loss of business with BP would probably end up having a "material adverse effect" on the company.
It wasn't clear if this was a reference to BP wanting Transocean and others to pay for part of the damages associated with the oil spill, but it's a strong probability it is.
Transocean closed Monday at $84.63, gaining $1.83, or 2.21 percent. BP closed at $48.47, up $0.37, or 0.77 percent.
Transocean owned the Deepwater Horizon drilling rig, operated by BP, which exploded and started the Gulf oil spill.
Even though the Gulf incident ended up costing Transocean about $137 million, they see a disintegrating relationship with BP as much more costly.
In a filing with the SEC, Transocean said BP accounted for about 10 percent of its overall $9.6 billion in revenue for 2010. Existing agreements are valued at almost three times that, coming to $2.9 billion.
In the filing Transocean called BP its "most significant customer," and the loss of business with BP would probably end up having a "material adverse effect" on the company.
It wasn't clear if this was a reference to BP wanting Transocean and others to pay for part of the damages associated with the oil spill, but it's a strong probability it is.
Transocean closed Monday at $84.63, gaining $1.83, or 2.21 percent. BP closed at $48.47, up $0.37, or 0.77 percent.
Noble Energy (NBL) Lands first Gulf Permit After BP (BP) Spill
Shares of oil driller like BP PLC (NYSE:BP), Transocean (NYSE:RIG), Diamond Offshore Drilling (NYSE:DO), Hess Corp. (NYSE:HES), Marathon Oil Corp. (NYSE:MRO), Chevron Corp. (NYSE:CVX) and ConocoPhillips (NYSE:COP) jumped on the news Noble Corp. was awarded the first deepwater drilling permit since the Gulf of Mexico oil spill.
Contrary to the assertions by the Obama administration, mounting pressure to drill for more oil in the Gulf of Mexico in light of the weak economic conditions and growing unrest in the Middle East played a big part in pushing the permit forward. More permits will be sure to follow as the administration socializes people into gradually accepting the reality.
The well Noble received a permit to drill on in is located in 6,500 feet of water, and which they had started to drill in April 2010, the same month the Deepwater Horizon exploded.
Drilling was suspended in June as a moratorium was imposed upon the Gulf by Obama.
Contrary to the assertions by the Obama administration, mounting pressure to drill for more oil in the Gulf of Mexico in light of the weak economic conditions and growing unrest in the Middle East played a big part in pushing the permit forward. More permits will be sure to follow as the administration socializes people into gradually accepting the reality.
The well Noble received a permit to drill on in is located in 6,500 feet of water, and which they had started to drill in April 2010, the same month the Deepwater Horizon exploded.
Drilling was suspended in June as a moratorium was imposed upon the Gulf by Obama.
Monday, February 28, 2011
Still No Permits After BP (NYSE:BP) Oil Spill
The Obama administration continues to drag its feet in awarding deepwater drilling permits to companies after the BP (NYSE:BP) oil spill in the Gulf of Mexico.
Michael Bromwich, director of the Bureau of Ocean Energy Management, said, "We are carefully and rigorously reviewing drilling plans. I am quite confident we will again get to the point where we can begin issuing deepwater permits."
When asked about the possible effects from the Libyan and Middle Eastern crisis, U.S. Secretary of the Interior Ken Salazar said it was "not changing at all what we are doing here," and weren't in a hurry to issue permits.
It seem he and Obama better start getting a sense of urgency, as it should have happened long ago on the basis of American oil demand and needs.
Even with a new rapid-response systems in place the Obama administration refuses to grant the drilling permits, suggesting they're attempting to require perfection no human being or company could provide, probably based on political expediency rather than the good of the country.
Michael Bromwich, director of the Bureau of Ocean Energy Management, said, "We are carefully and rigorously reviewing drilling plans. I am quite confident we will again get to the point where we can begin issuing deepwater permits."
When asked about the possible effects from the Libyan and Middle Eastern crisis, U.S. Secretary of the Interior Ken Salazar said it was "not changing at all what we are doing here," and weren't in a hurry to issue permits.
It seem he and Obama better start getting a sense of urgency, as it should have happened long ago on the basis of American oil demand and needs.
Even with a new rapid-response systems in place the Obama administration refuses to grant the drilling permits, suggesting they're attempting to require perfection no human being or company could provide, probably based on political expediency rather than the good of the country.
Thursday, February 24, 2011
BP's (BP) Feinberg Tells 1,489 Victims to Take it or Leave it
Kenneth Feinberg said he has sent 1,489 offers for final payment to victims of BP Plc’s (NYSE:BP) oil spill, the first round since completion of a methodology for calculating future losses.
Feinberg, who administers a $20 billion claims fund paid by BP, said in an interview today that he also has distributed 466 interim checks since making the payment formula final on Feb. 18. He didn’t disclose the amounts involved.
Lack of documentation for claims continues to be an obstacle to compensation, according to Feinberg, a Washington lawyer. The fund has sent letters to about 130,000 claimants asking for additional documentation to demonstrate losses. So far only 17 percent have responded, he said.
“The absence of substantiation is a huge problem,” Feinberg said.
Full Story
Feinberg, who administers a $20 billion claims fund paid by BP, said in an interview today that he also has distributed 466 interim checks since making the payment formula final on Feb. 18. He didn’t disclose the amounts involved.
Lack of documentation for claims continues to be an obstacle to compensation, according to Feinberg, a Washington lawyer. The fund has sent letters to about 130,000 claimants asking for additional documentation to demonstrate losses. So far only 17 percent have responded, he said.
“The absence of substantiation is a huge problem,” Feinberg said.
Full Story
Transocean (NYSE:RIG) Drops $800 Million on $1 Billion Write-Down
After the explosion on their Deepwater Horizon oil rig in the Gulf of Mexico, which was operated by BP (NYSE:BP), Transocean (NYSE:RIG) has struggled to generate revenue, and was forced to book a $1 billion charge, resulting in a loss of $799 million in the fourth quarter.
For the quarter Transocean had a net loss of $2.51 a share, reversing a profit of $2.24 a share, or $723 million, in the same quarter last year.
Revenue for the quarter dropped 21 percent to $2.16 billion from $2.73 billion.
Excluding charges, adjusted earnings came to 68 cents a share, missing the 88 cents a share estimated by analysts polled by FactSet. Revenue was also lower than the $2.28 billion projected by analysts.
Charges in the quarter came to $1.02 billion, or $3.19 a share, which included $1.01 billion to account for a current and estimated decline in day rates and utilization, and a loss on the retirement of debt.
Separately, Transocean booked expenses of $28 million, or 8 cents a share, in connection to the loss of the Deepwater Horizon oil rig.
For the quarter Transocean had a net loss of $2.51 a share, reversing a profit of $2.24 a share, or $723 million, in the same quarter last year.
Revenue for the quarter dropped 21 percent to $2.16 billion from $2.73 billion.
Excluding charges, adjusted earnings came to 68 cents a share, missing the 88 cents a share estimated by analysts polled by FactSet. Revenue was also lower than the $2.28 billion projected by analysts.
Charges in the quarter came to $1.02 billion, or $3.19 a share, which included $1.01 billion to account for a current and estimated decline in day rates and utilization, and a loss on the retirement of debt.
Separately, Transocean booked expenses of $28 million, or 8 cents a share, in connection to the loss of the Deepwater Horizon oil rig.
Friday, February 18, 2011
BP (NYSE:BP) Close to Launching Offshore Drilling in Libya
Citing the desire of the company to be extra careful after the oil spill in the Gulf of Mexico, along with changing the oil rig they were going to use, BP (NYSE:BP) spokesman Robert Wine said the company is readying itself to begin offshore drilling off the coast of Libya in June; a little later than anticipated.
Wine noted, "We postponed it to do extra checks following the oil spill and also the rig we had lined up we decided wasn't suitable, so we've got another rig.
"Onshore, we've got a rig in place and they are getting ready, so that should get under way shortly."
Originally the company had had plans in place to launch offshore drilling in Libya in 2010.
As to the changing of oil rigs, BP was going to use a rig from Noble Corp. (NYSE:NE), but decided to go with the Deep Ocean Ascension from Pride International Inc (NYSE:PDE) instead.
Wine noted, "We postponed it to do extra checks following the oil spill and also the rig we had lined up we decided wasn't suitable, so we've got another rig.
"Onshore, we've got a rig in place and they are getting ready, so that should get under way shortly."
Originally the company had had plans in place to launch offshore drilling in Libya in 2010.
As to the changing of oil rigs, BP was going to use a rig from Noble Corp. (NYSE:NE), but decided to go with the Deep Ocean Ascension from Pride International Inc (NYSE:PDE) instead.
BP (BP) Says Feinberg Paying Too Much for Claims Victims
Kenneth Feinberg, administrator of the $20 billion escrow fund provided by BP (NYSE:BP) for victims of the Gulf of Mexico oil spill, is now under fire from BP for being "too generous" with how he is figuring out what the final payment will be for many claims.
At issue from BP's perspective is Feinberg's assumption of what future losses will be. BP says there are no facts supporting the future losses assumed by Feinberg.
BP notes Feinberg allows for 70 percent in losses for 2011 and 30 percent for 2012, as measured against 2010 losses. It says there are no facts supporting this and the numbers are being inflated.
On the other side of the spectrum, those wishing to make claims or being rejected for claims they made, have accused Feinberg of not giving his reasoning or the process being too slow.
He has said more than once that a major reason for the pace of the process is the people and businesses attempting to game the system, and the large amount of claimants applying for relief.
While there have been a few cases of the government prosecuting those making fraudulent claims, you would think they would be more aggressive in that pursuit, rather than trying to twist the arm of BP and Feinberg to pay out more than they actually owe.
At issue from BP's perspective is Feinberg's assumption of what future losses will be. BP says there are no facts supporting the future losses assumed by Feinberg.
BP notes Feinberg allows for 70 percent in losses for 2011 and 30 percent for 2012, as measured against 2010 losses. It says there are no facts supporting this and the numbers are being inflated.
On the other side of the spectrum, those wishing to make claims or being rejected for claims they made, have accused Feinberg of not giving his reasoning or the process being too slow.
He has said more than once that a major reason for the pace of the process is the people and businesses attempting to game the system, and the large amount of claimants applying for relief.
While there have been a few cases of the government prosecuting those making fraudulent claims, you would think they would be more aggressive in that pursuit, rather than trying to twist the arm of BP and Feinberg to pay out more than they actually owe.
Workers Claim BP (BP) Misclassified Them as ICs, Seek Damages
Three workers claim they had been misclassified by BP (NYSE:BP) and The Response Group LLC, a business based in Cypress, Texas, as independent contractors, and are seeking damages in a federal lawsuit.
The lawsuit is seeking a notice for others to join the trio if they have similar complaints.
Included in the damages they seek are compensation for overtime and other alleged benefits owed them, along with attorney fees.
According to the plaintiffs, they were part of tens of thousands of workers assigned to clean up the Gulf Coast after the oil rig Deepwater Horizon exploded, releasing oil into the Gulf of Mexico.
The lawsuit is seeking a notice for others to join the trio if they have similar complaints.
Included in the damages they seek are compensation for overtime and other alleged benefits owed them, along with attorney fees.
According to the plaintiffs, they were part of tens of thousands of workers assigned to clean up the Gulf Coast after the oil rig Deepwater Horizon exploded, releasing oil into the Gulf of Mexico.
Wednesday, February 16, 2011
BP (NYSE:BP), Russia in Arctic Drilling Deal
After months of talks and negotiations, BP (NYSE:BP) and Russia have come to agreement on drilling for offshore oil in the Arctic, opening up a potentially huge reserve of oil to both parties.
With Russia depending heavily on oil production for its exports, Prime Minister Vladimir Putin said BP is the best oil company to work with, citing the lessons they learned from the oil spill in the Gulf of Mexico.
Most of the exploratory drilling will probably happen in the region of the Kara Sea, according to Russian authorities. Drilling in the region has revealed significant amounts of natural gas and oil deposits.
Specifics of the deal will be released sometime soon, including specific areas and time frames.
BP closed Tuesday at $47.05, gaining $0.36, or 0.77 percent.
With Russia depending heavily on oil production for its exports, Prime Minister Vladimir Putin said BP is the best oil company to work with, citing the lessons they learned from the oil spill in the Gulf of Mexico.
Most of the exploratory drilling will probably happen in the region of the Kara Sea, according to Russian authorities. Drilling in the region has revealed significant amounts of natural gas and oil deposits.
Specifics of the deal will be released sometime soon, including specific areas and time frames.
BP closed Tuesday at $47.05, gaining $0.36, or 0.77 percent.
BP's (NYSE:BP) Institutional Investors Claim They Were Misled
The old story that BP (NYSE:BP) misled investors concerning the safety practices of the company continues on, as investor lawsuits claim the commitment of the company to safety was a lie and the share price of the company was inflated for several years before the explosion on the oil rig which led to the huge Gulf oil spill.
Attorneys for the Ohio and New York state pension funds said, “The truth about BP and its lack of commitment to and implementation of safety processes to avoid preventable incidents began to emerge. Investors were deceived as to BP’s true risk profile in deep sea drilling.”
Lawyers went as far as to say BP retaliated against those workers who reported safety concerns. They added, “BP engaged in continuous and systematic retaliation against employees who reported concerns about the safety and integrity of BP’s operations.”
The lawsuit involving the Ohio and New York pension plans are seeking class status for the case, which would cover American depositary receipts (ADRs) from Jan. 16, 2007 to May 28, 2010.
BP closed Tuesday at $47.05, gaining $0.36, or 0.77 percent.
Attorneys for the Ohio and New York state pension funds said, “The truth about BP and its lack of commitment to and implementation of safety processes to avoid preventable incidents began to emerge. Investors were deceived as to BP’s true risk profile in deep sea drilling.”
Lawyers went as far as to say BP retaliated against those workers who reported safety concerns. They added, “BP engaged in continuous and systematic retaliation against employees who reported concerns about the safety and integrity of BP’s operations.”
The lawsuit involving the Ohio and New York pension plans are seeking class status for the case, which would cover American depositary receipts (ADRs) from Jan. 16, 2007 to May 28, 2010.
BP closed Tuesday at $47.05, gaining $0.36, or 0.77 percent.
Monday, February 14, 2011
SeaHawk Drilling (NASDAQ:HAWK) Plunges on Bankruptcy Filing
SeaHawk Drilling's (NASDAQ:HAWK) pain is Hercules Offshore Inc.'s ((NASDAQ:HERO) gain, as SeaHawk has filed for bankruptcy protection while Hercules will acquire Seahawk's fleet of offhore drilling rigs for $105 million.
SeaHawk is a victim of the Obama administration's over-response to the BP (NYSE:BP) oil spill, being devastated by the loss of business from the moratorium and eventual refusal to grant permits in the region for deepwater drilling.
Hercules Offshore said they're going to acquire the assets with 22.3 million shares of its stock, $25 million in cash to retire Seahawk debt and additional cash for working capital. The February 10 closing price of $3.62 a share for Hercules' stock brings the value of the deal to $105 million.
The deal will be part of the Chapter 11 bankruptcy SeaHawk filed for on Friday.
The bankruptcy court has been asked to expedite the deal, which should close sometime in the second quarter.
Seahawk was trading at $4.67, down $3.23, or 40.89 percent, as of 1:01 PM EST. Hero was trading at $4.30, up $0.68, or 18.78 percent.
SeaHawk is a victim of the Obama administration's over-response to the BP (NYSE:BP) oil spill, being devastated by the loss of business from the moratorium and eventual refusal to grant permits in the region for deepwater drilling.
Hercules Offshore said they're going to acquire the assets with 22.3 million shares of its stock, $25 million in cash to retire Seahawk debt and additional cash for working capital. The February 10 closing price of $3.62 a share for Hercules' stock brings the value of the deal to $105 million.
The deal will be part of the Chapter 11 bankruptcy SeaHawk filed for on Friday.
The bankruptcy court has been asked to expedite the deal, which should close sometime in the second quarter.
Seahawk was trading at $4.67, down $3.23, or 40.89 percent, as of 1:01 PM EST. Hero was trading at $4.30, up $0.68, or 18.78 percent.
BP (NYSE:BP) Getting Sued by Alabama County School System Over Property Taxes
BP (NYSE:BP) is getting sued by the Mobile County school system in Alabama over alleged loss of revenue from lower value of homes which resulted in reduced property taxes.
The county claims this is the result of the BP oil spill in the Gulf of Mexico.
According to Mobile County schools Superintendent Roy Nichols, he will have a study conducted to ascertain the effects on the school system from the supposed loss in revenue.
Nichols incredibly says, "I believe we will get some money because we deserve it. We've been harmed and we need to be made whole."
Other allegations are the country lost revenue from other sources and jobs that have disappeared.
The idea that the country "deserves" money from BP is of course ludicrous. They deserve nothing at this time, as there is no proof the cause of the alleged loss of revenue is from a reduction in property taxes that came about from the Gulf oil spill.
How about the loss in revenue from the housing market that has property taxes around the U.S. plunging? Is all of that from BP?
It's unclear how the drop in property value from the recession can be distinguished from the alleged loss in property value from the Gulf oil spill.
If counties in other regions of the Gulf haven't suffered very similar losses, than it could be it has nothing to do with the oil spill and everything to do with the ongoing fallout from the housing crisis, which has entered into what many are identifying as a double-dip housing recession.
To attempt to use the Gulf oil crisis as a reason for the loss in tax revenue is cynical at best.
How about cutting back on big government services and overpaid teachers? The private sector is paying these outrageous wages and benefits, which are far above what the business is able to pay.
Why taxpayers should have their productivity taxed in order to allow big government and overpaid government employees continue on as they are is ridiculous. Cut the taxes and size of government. Cut the bloat. That's the answer. Using the BP oil spill as means of making up for government bloat is unethical.
The county claims this is the result of the BP oil spill in the Gulf of Mexico.
According to Mobile County schools Superintendent Roy Nichols, he will have a study conducted to ascertain the effects on the school system from the supposed loss in revenue.
Nichols incredibly says, "I believe we will get some money because we deserve it. We've been harmed and we need to be made whole."
Other allegations are the country lost revenue from other sources and jobs that have disappeared.
The idea that the country "deserves" money from BP is of course ludicrous. They deserve nothing at this time, as there is no proof the cause of the alleged loss of revenue is from a reduction in property taxes that came about from the Gulf oil spill.
How about the loss in revenue from the housing market that has property taxes around the U.S. plunging? Is all of that from BP?
It's unclear how the drop in property value from the recession can be distinguished from the alleged loss in property value from the Gulf oil spill.
If counties in other regions of the Gulf haven't suffered very similar losses, than it could be it has nothing to do with the oil spill and everything to do with the ongoing fallout from the housing crisis, which has entered into what many are identifying as a double-dip housing recession.
To attempt to use the Gulf oil crisis as a reason for the loss in tax revenue is cynical at best.
How about cutting back on big government services and overpaid teachers? The private sector is paying these outrageous wages and benefits, which are far above what the business is able to pay.
Why taxpayers should have their productivity taxed in order to allow big government and overpaid government employees continue on as they are is ridiculous. Cut the taxes and size of government. Cut the bloat. That's the answer. Using the BP oil spill as means of making up for government bloat is unethical.
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