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BP expects $32 billion cleanup cost

BP gave investors a glimpse of its future Tuesday, one that will feature a new American chief executive, slimmed-down operations, and $32.2 billion or more of payments to clean up and compensate people damaged by the oil spill in the gulf.

"We have much to do to make it right," BP chairman Carl-Henric Svanberg said in a conference call with investment analysts, referring to the Gulf Coast. But he added that BP's directors were also "determined to restore value to our shareholders."

BP said it would sell $25 billion to $30 billion in assets over 18 months, shedding about 10 percent of its oil and natural gas output. That should enable it to shrink its outstanding debt and reinstate dividends next year.

Svanberg announced that the board had picked Robert Dudley to replace chief executive Tony Hayward.

Without oil spill costs, the company would have declared a profit of $5.6 billion for the second quarter. The charges turned that into a $17.2 billion loss.

BP expects $32 billion cleanup cost 07/27/10 [Last modified: Tuesday, July 27, 2010 10:55pm]
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