BP clean up bill hits $100m a day

BP today confirmed that the cost of the oil spill in the Gulf of Mexico has hit $100m a day for the first time, taking its total bill following the disaster to $2.65bn so far.

The company revealed it has spent $300m since its last update three days ago, adding that over $128m has now been paid out in compensation payments. The costs are in addition to the $20bn that the company has pledged to pay into an independently managed clean up and compensation fund.

The latest update came as British Prime Minister David Cameron for the first raised the prospect that the company could collapse unless some clarity is provided over the extent of its liabilities.

Speaking in an interview on Canadian television ahead of this weekend's G20 summit, Cameron said that steps had to be taken to avoid the potential " destruction" of the oil giant.

"This is an environmental catastrophe and we should feel sympathy and understanding for people who are suffering in that way," he told CBC. "I know that BP feel like that too. They want to pay out money, they are setting aside money. But I think it is also in all our long-term interests that there is some clarity, some finality, to all of this, so that we don't at the same time see the destruction of a company that is important for all our interests."

Financial analysts have predicted that the spiraling costs associated with the disaster could make it a takeover target for rival oil firms or sovereign wealth funds.

However, the White House has insisted it will not place a cap on BP's liabilities and is currently considering pursuing criminal charges against the company.

Following a meeting with Barack Obama where the on-going crisis was discussed the two leaders issued a statement reiterating that they wanted BP to "remain a strong and stable company".

There was a modicum of better news for BP this morning as the company's shares recovered some of the losses that pushed its share price to a 14 year low on Friday.

There were also reports over the weekend that the company's attempts to drill a relief well that will effectively cap the leak are running ahead of schedule.

The Sunday Times reported that the relief well is now within 200 horizontal feet and the operation to plug the leak could be completed within two and a half weeks, well ahead of the early August projections released by BP.

The paper also reported that US energy secretary Steven Chu is to travel to BP's operation centre in Houston this week to oversee the final stages of the project.

However, with the first tropical storm of the year brewing in the Gulf of Mexico, albeit away from the location of the drilling operation, BP is reluctant to publically confirm that the project is ahead of schedule for fear of further setbacks, confirming only that it remains on track to complete the project by early August.