- CNTV English - CCTV News

Worries about BP's future

07-28-2010 14:07 BJT

Watch Video

Play Video

On the heels of BP's announcement that embattled CEO Tony Hayward will step down, many seem more concerned about the future of the company itself. It remains to be seen whether the British oil giant will be able to cover all costs resulting from the catastrophic oil spill in the Gulf of Mexico?

BP's shares have shrunk by 100 billion US dollars.

In addition to the plunge in the company's share price, ratings agencies have downgraded BP bonds to junk. Some investors are now looking to take advantage of the opportunity to acquire a stake in the company.

British media reports claim BP has already asked many investment consultants to canvass for rivals and sovereign funds, hoping to sell off five to ten percent of the company's stakes.

For BP, its largest concern is covering the immense bill for the oil spill in the Gulf of Mexico. This June, BP's senior executives spoke with US President Barack Obama and agreed to open a 20-billion US dollar Third Party Compensation Account. The money will be used to compensate residents around the Gulf over the next three and a half years.

Analysts say the final compensation will amount to 30 to 40 billion US dollars, while Goldman Sachs has estimated that number could reach 70 billion.

One out of seven pounds in Britain's pension fund comes from BP.

This is what connects the fate of BP to British investors. What's more, BP offers job opportunities for more than 10-thousand people in the UK, and 80-thousand worldwide.

Analysts predict the shadow of the oil spill will linger on for years, despite the fact that BP finally seems to have controlled the problem.

Whether BP is able to march out of the current predicament, will depend largely on how the company deals with the aftermath, and whether it can make good on its fiscal responsibilities.

Related stories

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program