BP Leads FTSE 100 Stocks As Macondo Partner Agrees To Pay
Oil giant BP was the best performing company listed on London’s FTSE 100 Friday following the announcement that one if its drilling partners in the Gulf of Mexico has agreed to contribute toward the cost of the spill there in 2010.
Moex, a division of the Japanese commodities trader Mitsui, held a 10% share in the Macondo well but blamed BP entirely for the disaster and refused to contribute toward the costs of repair and compensation. The decision reversal came about following a White House commission’s findings on the causes of the accident.
BP said that Moex would pay them $1.1 billion after the company accepted“the findings by the Presidential Commission that the accident was the result of a number of separate risk factors”. BP subsequently called for its other partner, Andarko Petroleum which held a 25% stake in the Deepwater Horizon to settle the ongoing dispute over the exposure the company had to the disaster.
Atif Latif, director of trading at Guardian Stockbrokers said “This could be the start of a trend of a move of payments in favour of BP which will be beneficial to the share price and limit liabilities.”
The news prompted a 3.2% jump in BP’s share price up to 461.9 pence and contributed to the FTSE index of the top 100 stocks to top the crucial 6,000 points barrier in early trading.