BP to hold dividend payout

**Muadib** · 16-06-2010, 08:05 PM

Originally Posted by thehighlander959

Originally Posted by pet coon

Not knowing the relevance of your being on a FPSO to the transocean drilling vessel, the blowout, fire, and the present situation, nor the comparison of the greed and incompetence of wall street to BP, I will not comment on their contribution to the topic, "will BP survive"

The relevance is that at any time the OIM can tell the Client Rep or Company Man to back off, if he feels that the decisions being made onboard on behalf of the client are endangering his vessel/platform and workforce.

The Client Rep is there as the representative of the Oil Company in an advisory capacity. The OIM is the man in charge and is Captain of the Rig/FPSO normally the buck stops with him.

Then how do you explain the multiple 'heated discussions' i.e.; arguments between the BP company man and the TO OIM???

I understand your point, but when the operator holds multi-billion $$$ contracts with the rig contractor and the operator is telling the contractor what to do, then the operator has the upper hand...

This disaster was predicted by many who were involved in this well... Seems they were right and the BP company man and operations manager were wrong...

**pet coon** · 16-06-2010, 08:17 PM

Originally Posted by thehighlander959

Just for Pet Coon...

I once worked for Chevron Texaco in Angola, they had an FPSO on lease from a Monaco based company drilling and producing in Block 16 Offshore. This was not an exploratory rig like the Deepwater Horizon.
This FPSO was drilling and producing in the region of 85,000bbls per day, an offload every ten days via a CALM Buoy. With me so far????

The Company Man onboard I knew very well from a previous assignment in the North Sea. We were having a discussion one day as to the modifications and commissioning of of some new equipment which was requested by the Client and was deemed suitable to improve production by the Drilling Contractor.

I asked him where does the buck stop in the event of a catastrophic event. His words were "Touch wood I hope that we never see this on this FPSO"
all I will say is that I am not in command of this vessel the vessel belongs to -
The OIM makes all the decisions on here and informs me to ask if I have any objections or problems concerning Safe Working Operations. And whether we are following the guidelines set in the Safe Working Procedures and all JSA (Job Safety Analysis) and Risk Assessments are being adhered too.

I am not aware that the situation (practices/operation hazardous to life or equipment) was /is any part of the Transocean/BP pre blowout scenario. You keep harping on this seemly as an attempt to shift blame away from BP to transocean.That dog won't hunt. You mention on another topic you are/were a BP employee which is commendable, in that you work for a good company who has their teat in a massive wringer at present. BP designed the drilling program, mud program, casing program, logging, testing, etc, etc with input that they requested, evaluated and approved. I am impressed that you remember a conversation from the past ver batium which came about from a hypothetical catastrophic event.

**thehighlander959** · 16-06-2010, 08:23 PM

^

Muadib

I respect the fact that you probably have more first hand information on this incident than most, as you are working in the area affected by the spill and know people directly affected by this.

My main concern is that the people who lost their lives in this tragic event are not forgotten and their families are supported and compensated for their loss. It never replaces the loss and is small comfort to the people left on the beach.

I have worked on equipment during commissioning when the OIM and the Client Rep have asked me to speed up the operation to get the system in service.
My reply to them is I will follow the guidelines in the Procedures written for the commissioning operation.

If you are telling me to commission this equipment before full testing and evaluation please speak to my Engineering Manager in Aberdeen. He will advise you on the commissioning and completion documentation prior to equipment coming into service.

When you have discussed this with him I am sure he will contact me and advise me on the way forward. Good Day gentlemen.

**thehighlander959** · 16-06-2010, 08:32 PM

Pet Coon,

You are trying to tell me that the Drilling Contractor on the Deepwater Horizon has no blame whatsoever for the catastrophic event in the GOM?

No one absolutely no one has admitted any liability for this incident Client or Contractors, and they will not do so because blame will be apportioned in the courts by the US lawyers. Who are circling overhead as we speak.

Just let me know when BP make an admission of guilt for the Oil Spill. Maybe when "Hell freezes Over"

**pet coon** · 16-06-2010, 09:03 PM

Highlander959, I did not tell you that you made it up. Your back on the liability kick again, think responsibility. News flash lawyers do not make judgments apportioned or otherwise in US courts. Finally, I always heard stubbornness was trait form the UK, admission or not they will pay thru the nose and probably get their arse reamed also.

**thehighlander959** · 16-06-2010, 09:18 PM

^
Who will get their asses kicked? Yes BP probably will, however they will certainly kick the asses of the contractors who did not perform the tasks offshore in a safe and prudent manner.

Judges make decisions in US Courts as in the UK. Lawyers for both parties will jockey for position to ensure their clients pay as little as possible, thats what legal teams do.

How many Exxon executives went to jail after the spill in Alaska?
Not many and Exxon are still here.. Governments have short memories, how much did BP pay to the Democrats and Republicans in the USA over the years??

**Boon Mee** · 16-06-2010, 09:27 PM

Originally Posted by thehighlander959

^
Who will get their asses kicked? Yes BP probably will, however they will certainly kick the asses of the contractors who did not perform the tasks offshore in a safe and prudent manner.

No matter how hard you spin it, BP's well program sucked and now it's all coming out. Can't blame Transocean or Cameron or Schlumberger or Haliburton for your mistake(s)...

**thehighlander959** · 17-06-2010, 07:19 AM

^
I don,t believe BP have admitted to any mistakes during the drilling operations on the Deepwater Horizon. I have not seen the Drilling Program for these operations so I cannot comment.

This has a few rounds to go yet.

I cannot see BP taking all the responsibility for this event, the other companies in the mix will be paying also one way or the other.

**thehighlander959** · 17-06-2010, 08:03 AM

Please read the article below:-
Trusting the Scorpion: BP, the Legacy of Republican Hypocrisy and Democratic Cowardice | CommonDreams.org

Not a link but a very interesting and frightening article concerning US Governments past and present and how they are manipulated by the major corporations.

**pet coon** · 17-06-2010, 10:49 AM

Originally Posted by thehighlander959

^
I don,t believe BP have admitted to any mistakes during the drilling operations on the Deepwater Horizon. I have not seen the Drilling Program for these operations so I cannot comment.

This has a few rounds to go yet.

I cannot see BP taking all the responsibility for this event, the other companies in the mix will be paying also one way or the other.

The drilling program would appear to have been successful as the well was TD ed, logged and a long string set. Halliburton has given copies of inter company as well as correspondence with BP as to their recommendation on centralization of the long string prior to cementing. This came after the transocean personal informed BP that a liner hanger was the normal procedure with the casing program being used. Neither of the mentioned/recommended procedures were followed for what ever reason. The additional centralizers required for a long string vs the original plan for running the liner apparently were not on location. The verification of cement,casing, formation integrity may have been verified or shown as suspect via a Schlumberger cement bond log, but this service, orginally ordered by BP, was canceled and the crew sent back to the beach via scheduled helicopter. Subsquent reported discussion of fluid displacement, plugging procedure, etc between Transocean and BP were not verified, with written documentation, in the hearing report I read. Decisions for hardware, procedures to follow are determined long before ordering the service companies to come to location. Any change that requires different/more support equipment will be accompanied by rig time loss (waiting on equipment) and someone will be called to answer when rig time is 500,000/day+_ The service companies are showing documents to cover their arse quite readily. The oil field cowboys may rock along for quite some time but things seem to have a way of catching up with them, eventually. BP will probably be looking at how far up the chain of command the approval of deletions/changes went and were documented. Their, BP drilling department might escape somewhat intact.

**HermantheGerman** · 17-06-2010, 12:45 PM

BP pays no dividents and will pay 20 billion $.
Liability ?

**Mid** · 17-06-2010, 01:05 PM

yep dividend suspended and an apology tendered ......................

**thehighlander959** · 17-06-2010, 08:39 PM

^
Did you say dividend suspended in America or worldwide? After all this is a multi national company.

**the dogcatcher** · 17-06-2010, 08:50 PM

This is not going to cost 10s of billions, this is gonna cost 100s of billions.
BP may well not contest anything legally, cheaper not to do so, certainly on a medium sized corporate level.
But if the Americans take the piss, well then perhaps BP will pull out altogether and lots of people will be out of pocket.

**HermantheGerman** · 18-06-2010, 11:41 AM

Pensions of UK affected ? After all this is a multi national Co.

**Butterfly** · 18-06-2010, 12:30 PM

time to put a few oil CEOs in jail,

**pet coon** · 18-06-2010, 01:08 PM

Doubt that Hayward or any CEO had any idea what was happening on this particular well, until it blew out. The organal well casing plan was changed at some point. When, will enter into the picture as you will not have the amount of casing/long string on board without planning. The number of centralizers required, were not sent with the long string used. The BP dispatcher and officials at the loading point have all the documents that will show when, who ordered, who supplied, etc. Hayward is probably well aware of the answers by now, although it will probably remain internal until pressed for specific answers. Will probably not have a effect except for civil litigation.

**HermantheGerman** · 21-06-2010, 02:54 AM

The numbers are going up, up and away $ 50 billions. If the hurricane season starts early then I'am sure BP is going to get blown away.

(Reuters) - BP (BP.L) is planning to raise $50 billion to cover the cost of the largest oil spill in U.S. history, London's Sunday Times reported without citing sources. The paper said BP planned to raise $10 billion from a bond sale, $20 billion from banks and $20 billion from asset sales over the next two years.
The oil major had said last week that it would suspend dividends and increase the pace of asset sales to $10 billion this year.
A spokesman for the group would not confirm any numbers on Sunday, when asked about the Sunday Times report.

BP to raise $50 billion for oil spill costs: report | Reuters

DaffyDuck · 21-06-2010, 07:15 AM

Yes, they will survive it, and in 10 years, their stock will be worth double what it is today, again.

Time to buy stock now -- or, better after hurricane season.

**pet coon** · 21-06-2010, 11:02 AM

How much of the BP stock are you purchasing at this time?

**HermantheGerman** · 21-06-2010, 12:09 PM

Originally Posted by pet coon

How much of the BP stock are you purchasing at this time?

"0"
zilch

**Mid** · 26-06-2010, 01:42 PM

BP plumbs depths as share price tumbles to 14-year low
Douglas Hamilton
26 Jun 2010

Shares in BP fell to a 14-year low after the company announced that the cost of responding to the Gulf of Mexico oil leak has risen to $2.35 billion (£1.57bn), with no sign of an end to the energy group’s woes in sight.

London-based BP said the sum included $126m paid out in claims to those affected by the disaster.

Investors were also worried by news that a hurricane that could disrupt BP’s clean-up operation may soon be heading for the Gulf of Mexico.

The first tropical storm of the Atlantic hurricane season has a 60% chance of forming this weekend, with one computer model indicating it could head into the Gulf of Mexico where BP has a flotilla of vessels trying to clean up an oil spill.

A collection of thunderstorms have been intensifying in the Caribbean off Honduras and Nicaragua, the US National Hurricane Centre said.

The share price dipped as low as 296p during morning trading.

That took the shares well below half of the 655p price on April 20, the day an explosion killed 11 workers on the Deepwater Horizon drilling rig.

The shares, which are tied to pension schemes on both sides of the Atlantic, later closed 20.65p down at 304.6p, a loss on the day of 6.3%.

BP has seen about $100bn (£65bn) wiped off its share value since April 20.

Analysts at Japanese investment bank Nomura said in a note to investors that equity-linked financing could be the attractive short-term solution for BP to help cover the costs of the clean-up.

“A heavy inversion of both credit yield and equity volatility suggests the market is concerned about a near-term credit event around BP,” they said.

The broker said pressure was mounting on the oil major to improve its liquidity position to “assure sufficient funds to cap the well and meet ‘fat tail’ scenarios around near-term expenses.

“With debt expensive and asset sales taking time, we consider that equity-linked financing – perhaps backed by Sovereign Wealth as a show of support – could prove the attractive short-term solution,” Nomura added.

Nomura also said it had lowered its price target for the oil giant to 465p.

However, analysts at City brokers Collins Stewart continued to recommend BP shares as a “buy” in a research note.

The company earlier this month had lowered its target price for BP to 450p, noting that the investment was “not one for the faint-hearted”.

The cost of insuring BP’s debt widened to near-record levels amid market worries of a short-term funding crisis for the beleaguered company.

Insuring BP’s debt for five years now costs 5.85% – meaning an investor holding £10m in BP debt must pay £585,000 to protect itself against potential default, according to financial research firm Markit.

But the cost of insuring for one year is higher at 7.25% – creating a dreaded “inverted yield curve” and a clear signal of market worries over the immediate costs faced by the company.

The spike will make it more expensive for BP if it goes to financial markets with a £10bn (£6.7bn) bond issue as part of a reported $50bn (£33.7bn) fundraising to deal with what is now the worst oil spill in US history.

BP chief executive Tony Hayward officially handed over day-to-day control of the Gulf of Mexico crisis to BP board director Bob Dudley, an American, earlier this week as it set up a new division to manage the spill.

heraldscotland.com

**the dogcatcher** · 26-06-2010, 02:55 PM

Hmmmm.....
Hurricanes.
Final nail or light at the end of the tunnel.
Watch this space.

**thehighlander959** · 27-06-2010, 08:38 AM

In my opinion BP's sad experiences in the USA probably have more to do with the US management and bold, but risky, engineering practices inherited from Amoco and Arco, - rather than the more conservative British leadership.

So a gradual withdrawal from USA based activities may be of long term benefit to the company."

Replace 'probably' with 'certainly' and you have the answer.

The US Regulator and Oil Industry managers could learn so much from the Safety Case approach adopted in the UK after Piper Alpha. I'm afraid they do not like being advised by 'foreigners' on safety and integrity management best-practice.

**Muadib** · 27-06-2010, 09:23 AM

^ Lest anyone forget, the well plan for this well was approved by the MMS prior to implementation...

Things are looking grim for BP... Paying their dividends is the least of their worries...

If BP loses much more market cap, they will no longer be able to float short-term money for operations... Sure, they have cash on hand, but with obligations rising it will not be long before they will technically become insolvent with their only option being bankruptcy for their US operations... They are attempting to float a $20 billion in bonds... This will be but a drop in the bucket with everyone and their pelican lining up with their hand out...

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