THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

BP’s oil spill cleanup tab hits $2.65b

Company has lost $100b in value

Workers pulled a boom used to contain oil aboard a boat off Grand Isle, La., yesterday. The $2.65 billion BP says it has paid so far includes spill response, containment, and grants to Gulf states. Workers pulled a boom used to contain oil aboard a boat off Grand Isle, La., yesterday. The $2.65 billion BP says it has paid so far includes spill response, containment, and grants to Gulf states. (Joe Readle/Getty Images)
By Michael Kunzelman and Vladimir Isachenkov
Associated Press / June 29, 2010

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NEW ORLEANS — BP’s mounting costs for capping and cleaning up the Gulf of Mexico spill have reached $2.65 billion, it said yesterday, but the oil giant denied reports out of Russia that chief executive Tony Hayward is resigning.

The company’s expenses climbed $100 million per day over the weekend, according to an SEC filing yesterday, as engineers eyed a tropical storm headed for the Texas-Mexico border. It was expected to miss the oil spill area but could still generate disruptive waves and winds.

It was a rocky start to the week after BP PLC stock fall 6 percent Friday in New York to a 14-year low. BP has lost more than $100 billion in market value since the deep-water drilling platform it was operating blew up April 20, killing 11 workers and starting the massive leak that has fouled the coastline in four states.

BP, based in Britain, rushed to deny the report by Russia’s state RIA Novosti news agency, which said a senior Russian Cabinet official said Hayward was expected to resign as chief executive.

It quoted Deputy Prime Minister Igor Sechin, before a Moscow meeting with Hayward yesterday, as saying that Hayward would introduce his successor.

BP spokeswoman Carolyn Copland in London said the report “is definitely not correct.’’

“They are mistaken,’’ US-based BP spokesman Mark Proegler said of the Russian report.

After the meeting, a spokesman for Sechin said Hayward’s resignation wasn’t not discussed.

BP shares gave up some ground in London after the Russian report. But they were still up a fraction at $4.61.

BP’s US shares gained about 2.5 percent.

Oil analyst Konstantin Cherepanov from the Swiss investment bank UBS said he gave little credence to reports of Hayward’s resignation.

“I’m sure there has been a misunderstanding. Hayward’s resignation at this time and in this place lacks logic,’’ Cherepanov, who is based in Moscow.

In a filing yesterday to US securities regulators, BP said the cost of its response to the Gulf of Mexico oil spill had reached about $2.65 billion, up from $2.35 billion as of Friday. The costs include spill response, containment, relief well drilling, grants to Gulf states, claims paid, and federal costs, but not a $20 billion fund for Gulf damages the company created this month.

BP said it had received more than 80,000 claims and made almost 41,000 payments, totaling more than $128 million.