E2 Round-up: BP replaces CEO Hayward, loses $17B and selling $30B in assets, while taxpayers on hook for part of spill cost

BP taking $17 billion second-quarter loss, selling $30 billion in assets over the next 18 months

The announcement of new leadership came as BP also reported “a record $17 billion loss in the second quarter as the company set aside billions of dollars to deal with the aftermath of the oil spill in the Gulf of Mexico,” the New York Times reports. This compares with a $4.4 billion profit during the same period last year. 

“BP set aside $32.2 billion for costs related to the spill, including $20 billion for an escrow fund announced earlier. To help cover the costs, the company plans to sell assets worth $30 billion over the next 18 months. The sales would leave BP with a smaller exploration and production operation, it said.”

It also means that taxpayers on both side of the Atlantic will be footing part of the bill for the spill

BP will be able to use a $10 billion tax credit against the costs of cleaning up the Gulf oil spill, the Guardian reports.

“BP announced earlier today that it is making a $32.2bn provision for the cost of the spill caused by the explosion and subsequent sinking of the Deepwater Horizon drilling rig in April,” the paper reports. “The company explained, however, that the net impact on BP’s bottom line will only be $22bn because the company will be able to record a $10bn tax credit. BP’s UK tax bill will also be reduced, the firm added.”