BP boss vows to to repair Gulf coast devastated by oil spill

WASHINGTON: BP boss Tony Hayward vowed on Thursday the British energy giant would repair the economic and environmental devastation caused by the Gulf of Mexico oil spill as he was quizzed by irate lawmakers.

“I know that only actions and results, not mere words ultimately can give you the confidence you seek. I give my pledge as the leader of BP that we will not rest until we make this right,” a contrite Hayward said.

Saying it was too early to pin down the causes of the April explosion on a BP-leased rig off Louisiana, Hayward pledged: “We and the entire industry will learn from this terrible event and emerge stronger, smarter and safer.”
Some lawmakers have publicly suggested senior BP officials should “commit hara-kiri” over what has become the nation’s worst ever environmental disaster.

Amid tight security and sitting alone at a table to face Congressmen and a media barrage, Hayward was sharply criticised in his first public appearance before Congress since the catastrophe was unleashed on southern US shores. “I’m sure you will get your life back, and with a golden parachute back in England. But we in America are left with the terrible consequences of BP’s reckless disregard for safety,” said Democratic Representative Bart Stupak.
Stupak, who chaired the hearing, was referring to a much-denounced statement in which Hayward, who has been the public face of the disaster, had said he wanted it to end so he could get on with his life.

On Wednesday BP agreed to set up a $20 billion escrow fund to pay compensation claims from thousands of Gulf businesses and residents facing economic ruin. News of the escrow fund deal with the US administration sent BP’s share price soaring almost 10% on Thursday, after days of falls sparked by uncertainty over its future.

BP will fund the account in four annual payments of $5 billion, the White House said in a statement, adding it was “neither a floor nor a ceiling” on BP’s total liability for the disaster.

The oil major scrapped dividends and pledged asset sales on Wednesday to help fund the payments.

Halting the $10 billion-a-year dividend, reducing investments in drilling and selling oil and gas fields will do enough to ensure the company’s financial stability, chief financial officer Byron Grote said.
The firm’s final bill will be tied to the amount of oil still spewing into the ocean each day, with US experts putting that figure at between 35,000 and 60,000 barrels.

Analysts said BP, which has already spent some $1.6 billion battling the spill and made a profit of around $14 billion in 2009, should be strong enough to weather the storm even if it has to borrow more.
Amid deepening anger over the spill, Louisiana Representative Joseph Caotold told one of Hayward’s colleagues this week that even the resignations of BP officials would not be enough.

“In the Asian culture we do things differently. During the samurai days, we just give you a knife and ask to you commit hara-kiri,” he said.