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Tags: US | BPs | Future | Glance

Analysts: BP Has Lots of Cash to Pay for Large Bill to Clean Spill

Friday, 18 Jun 2010 02:51 PM

 

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Cleanup, fines and lawsuits stemming from the Gulf of Mexico oil spill are likely to cost BP tens of billions of dollars. Yet many investment analysts say the British oil giant can survive the crisis.

Here's a look at some of the costs BP faces, and a snapshot of its finances.

 

BP'S COSTS ADD UP:

• It's already paid $1.8 billion.

• Cleanup tab could hit $20 billion, assuming worst-case spill estimates.

• If BP is found "negligent" under federal law, fines quadruple to $4,300 per barrel spilled, adding perhaps $20 billion to the bill.

• BP agreed to put $20 billion into a fund to pay fisherman and other workers who've lost money.

• Court cases could add tens of billions to cost, especially if criminal charges are filed.

 

BUT ITS FINANCES ARE STRONG:

• Strong cash flow from operations, estimated at $30 billion for 2010.

• Suspending dividend, tapping cash and selling assets frees up $25 billion this year.

• It could tap $10 billion in debt already lined up with banks.

• Because it has borrowed little so far, BP can easily hit up lenders for another $15 billion.

© Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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