BP says Gulf oil spill costs reach $1.25 billion‎

BP PLC announced on Monday that the cost of its response to the Gulf of Mexico oil spill had already reached $1.25 billion as it continued its attempts to contain more leaking crude.

They tried last week to stop the leak by placing a containment cap on its ruptured oil well. On Sunday BP’s containment cap collected 10,500 barrels of oil. From Thursday to Sunday, a total of 16,600 barrels of oil had been collected, the company said.

“Optimization continues and improvement in oil collection is expected over the next several days. It will be a few days before an assessment can be made as to the success of this containment effort” BP said in a statement.

BP hopes to enhance the system lowered over the well last week by using equipment initially developed for the failed “top kill.”

A second plan is meant to provide a more permanent containment cap by directing the oil and gas to a new free-floating riser ending about 300 feet below sea level.

“This long-term containment option is designed to permit more effective disconnection and reconnection of the riser to provide the greatest flexibility for operations during a hurricane,” BP said.

In the meantime, costs to stop the leak are continuously growing, though BP cautioned that it was too early to quantify total expenses and liabilities associated with the incident. The $1.25 billion figure excludes $360 million for a Louisiana barrier islands construction project, BP said.

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