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July 30, 2010 By Leave a Comment

PARIS, Jul 29 (MARKET WIRE) —
Press Release

29 July 2010

For further information, please contact:

Jean-Charles Simon / Geraldine Fontaine +33 (0)1 46 98 73 17

Communications and Public Affairs

Antonio Moretti +44 (0) 203 207 8562

Investor Relations Director

Very strong second quarter performance drives first half 2010 net income
to EUR 156 million

Thanks to a second quarter which illustrated the Group’s capacity to
deliver a high level of recurring profitability with a net income of EUR
120 million compared to EUR 91 million in the second quarter 2009 (i.e.
+32%), SCOR records a net half-year income of EUR 156 million, compared to
EUR 184 million in 2009.

In the first half 2010, SCOR combined growth, profitability and solvency:

– premium income of EUR 3,258 million. This corresponds to a rise of 8%
compared to the first half 2009 (+5% at constant exchange rates) excluding
equity-indexed annuity business in the USA and after normalising the level
of Non-Life business in the first half of 2009 to the annual growth rate
of 2009;

– net income of EUR 156 million;

– half-year net combined ratio of 102.8% for SCOR Global P&C thanks to a
combined ratio of 97.0% in the second quarter of 2010;

– operating margin of 6.0% for SCOR Global Life;

– return on invested assets (excluding funds withheld by cedants) of 4.0%;

– annualised ROE of 7.7%;

– shareholders’ equity of EUR 4.2 billion, up 8.1% compared to 31 December
2009, i.e. EUR 23.2 book value per share;

– operating cash flow of EUR 208 million.

In addition, the first quarter demonstrated the Group’s ability to absorb
an abnormally high concentration of natural catastrophes (Chile, Haiti,
Xynthia, etc.).

Denis Kessler, Chairman and Chief Executive Officer of SCOR, comments:
“The first half 2010 results once again illustrate the Group’s capacity to
combine growth, profitability and solvency, whilst maintaining a medium
risk appetite. SGPC’s renewals reflect the Group’s favourable positioning,
the first half results confirm our continued profitability and the
increase in our shareholders’ equity further strengthens the Group’s
financial situation and solvency.”

Key figures of the first half of 2010

Gross written premiums for Life and Non-Life reach EUR 3,258 million,
remaining stable compared to the first half of 2009 when they reached EUR
3,254 million (+0.1% but -2.7% at constant exchange rates). This stability
is principally due to the unfavourable impact of the planned and
deliberate reduction in equity-indexed annuity business and the
development of Non- Life reinsurance. Excluding equity-indexed annuities
business in the USA and by normalising the level of Non-Life business in
the first half of 2009 to the annual growth rate of 2009, premium income
grew by 8% compared to the first half of 2009 (+5% at constant exchange
rates). Bolstered by positive renewals, SCOR Global P&C’s (SGPC) premium
income records growth of +3.8% at EUR 1,764 million over the first 6
months of the year (+0.5% at constant exchange rates).

SCOR records a net income of EUR 156 million in the first half of 2010,
compared to EUR 184 million in the first half of 2009. In the second
quarter alone net income amounted to EUR 120 million compared to EUR 91
million in the second quarter of 2009. The first half result is impacted
by the high level of losses following a series of natural catastrophes,
predominantly in the first quarter. However, it has benefited from the
improved operating performance of SCOR Global Life (SGL), and greater
returns on the investment portfolio under the combined effects of an
active asset management policy and lower impairments.

The continued recovery of SGPC’s US business, which has now demonstrated
its capacity to generate recurring profits, allowed the reactivation of
the last set of deferred tax assets of the Non-Life entities in the USA
for an amount of EUR 29 million at the end of June 2010. In comparison,
net income registered at 30 June 2009 benefited from the reactivation of
EUR 100 million in deferred tax assets relating to the same entities
during the first quarter 2009.

Earnings per share (EPS) stands at EUR 0.87 compared to EUR 1.03 at the
end of June 2009. Annualised return on equity (ROE) amounts to 7.7% in the
first half of 2010, against 10.6% recorded for the same period in 2009.
For the first half standalone, annualised ROE totals 11.9%, compared to
10.5% in the second quarter 2009.

SCOR shareholders’ equity increases by 8.1% during the first half of 2010
to EUR 4.2 billion at 30 June 2010, compared to EUR 3.9 billion at 31
December 2009. Book value per share stands at EUR 23.2 at 30 June 2010.

SCOR recorded variations in the exchange rate on consolidated net assets
of EUR 272 million, compared to EUR 85 million for the first half of 2009.
During the first half, the Group continued to reduce its debt ratio and
currently has a leverage position of 10.6% compared to 14.6% at the end of
2009.

The Annual General Meeting of 28 April 2010 decided on a dividend payment
of EUR 1 per share, that is a payout ratio of 48%. It also determined that
the 2009 dividend payment could be made either in cash or in new shares
issued at EUR 15.96. This option was exercised in the amount of 2,647,517
new shares for a total value of EUR 42 million, split between EUR 21
million of share capital and EUR 21 million of additional paid-in capital.
The total sum of dividends distributed for 2009 reached EUR 179 million,
EUR 42 million being paid in shares and EUR 137 million in cash.

The positive operating cash flow linked to operational business stands at
EUR 208 million at 30 June 2010, compared to EUR 308 million for the same
period in 2009. This decrease stems mainly from SGL due to the planned and
deliberate reduction in the portfolio of equity-indexed annuity business
in the United States.

SGPC confirms its projected net combined ratio of less than 100% for the
year 2010 excluding exceptional events

SGPC reports gross written premiums of EUR 1,764 million for the first
half of 2010, compared to EUR 1,699 million in 2009, representing an
increase of 3.8%. This increase represents 0.5% at constant exchange
rates compared to 2009, a year marked by a sharp rise in gross written
premiums in the first half. Relative to normalised growth in the first
half of 2009 on the basis of the increase registered over the full year
2009, the first half of 2010 marks an increase of 8% in gross written
premiums compared to the first half of 2009.

The net combined ratio stands at 102.8% in the first half of 2010,
compared to 108.6% in the first quarter of 2010 and 97.5% in the first
half of 2009. Natural catastrophes contributed 13.1 points of net
combined ratio over the half year (compared to 20.2 points in the first
quarter 2010), whilst the second quarter saw natural catastrophe losses
in line with budget (6 points). The estimated total net cost for the
earthquakes in Chile and Haiti and hurricane Xynthia remains unchanged
relative to the figures communicated with the first quarter results.
Attritioned losses are down 1.5 points; this decrease illustrates the
dynamic management of the portfolio and the expected improvement in
technical results following the renewals of the last two years. Excluding
exceptional events and subject to natural catastrophe losses not
exceeding budget for the third and fourth quarters of the year, the net
combined ratio for 2010 should be below 100%.

The excellent P&C and Specialty treaty renewals at the end of June and in
July 2010 are characterised by premium volume growth of 19% at constant
exchange rates, totalling EUR 245 million, in line with the expected
underwriting profitability objective in 2010. These renewals concern
around 10% of the total annual volume of treaty premiums.

Following these renewals, SGPC maintains its estimation of the amount of
gross premiums in a range between EUR 3.45 and EUR 3.5 billion for 2010.

SCOR Global Life (SGL) records an operating margin of 6.0% in the first
half of 2010 compared to 5.1% in the first half of 2009

In the first half of 2010, SGL’s gross written premiums totalled EUR 1,494
million compared to EUR 1,555 million for the same period 2009 (a decrease
of 3.9%). Gross written premiums excluding equity-indexed annuity business
in the US amount to EUR 1,457 million compared to EUR 1,356 million in the
first six months of 2009, representing an increase of 7.6%. This growth
stems mainly from Critical Illness and Long-Term lines and from new
business in North America, the UK & Ireland.

The Life operating margin for the first six months ended 30 June 2010
amounted to 6.0% (compared to 5.1% for the same period 2009). This
increase of 0.9 percentage points stems mainly from improvements in the
profitability in different business segments and due to a positive
development of the investment income.

SCOR Global Investments (SGI) maintains its “rollover” investment strategy
and posts a sharp increase in net return on invested assets

In a context of low interest rates and greater volatility in the financial
markets, the Group is maintaining a “rollover strategy” for its fixed
income portfolio in order to have significant financial cash flows to
reinvest in the event of a sudden change in the economic and financial
environment, whilst seizing market opportunities in the short term.

This investment policy led to net realised gains of EUR 108 million during
the first two quarters of 2010. SCOR posts a net return on investments
(excluding funds held by cedants) of 4.1% in the second quarter 2010,
compared to 3.9% in the first quarter 2010. Consequently, SCOR has
recorded a net return on invested assets over the first 6 months of the
year (excluding funds withheld by cedants) of 4.0%, a significant rise
compared to the first half of 2009 (1.0%). The impact of impairments is
limited to EUR 52 million in the first half of 2010 compared to EUR 184
million in the first half of 2009. Taking into account the funds withheld
by cedants, net return on invested assets amounts to 3.4% over the first
half of 2010, compared to 1.4% in the same period of 2009.

Net investments, including cash, stand at EUR 21,663 million at 30 June
2010, compared to EUR 19,969 million at 31 December 2009. At 30 June 2010,
the Group’s investments consist of bonds (48.1%), funds withheld by
cedants (37.4%), cash and short-term investments (6.3%), equities (4.4%),
real estate (2.1%) and other alternative investments (1.7%). Liquidity
reaches EUR 1.4 billion at 30 June 2010, compared to EUR 1.7 billion at
31 December 2009.

SCOR’s high-quality fixed income portfolio (average rating AA) maintains a
relatively short duration of 3.4 years (excluding cash and short-term
investments), down slightly compared to 31 December 2009 (3.7 years).
Investments in inflation-linked bonds amount to EUR 1,022 million at 30
June 2010.

*

* *

Key figures (in EUR
millions)

+————————-+——-+————+————+————+
| | | H1 2010 | H1 2010 | H1 2009 |
+————————-+——-+————+————+————+
| | |(unaudited) |(unaudited) |(unaudited) |
+————————-+——-+————+————+————+
|Gross written premiums | 3 258 | 3 254 | 1 645 | 1 693 |
+————————-+——-+————+————+————+
|Non-Life gross written | 1 764 | 1 699 | 855 | 831 |
|premiums | | | | |
+————————-+——-+————+————+————+
|Life gross written | 1 494 | 1 555 | 790 | 862 |
|premiums | | | | |
+————————-+——-+————+————+————+
|Operating income excl. | 234 | 312 | 178 | 159 |
|impairments | | | | |
+————————-+——-+————+————+————+
|Net income | 156 | 184 | 120 | 91 |
+————————-+——-+————+————+————+
|Investment income | 356 | 149 | 184 | 153 |
+————————-+——-+————+————+————+
|Net Return on Investments| 4.0% | 1.0% | 4.1% | 3.6% |
+————————-+——-+————+————+————+
|Net Return on Assets | 3.4% | 1.4% | 3.4% | 3.1% |
+————————-+——-+————+————+————+
|Non-Life combined ratio |102.8% | 97.5% | 97.0% | 95.8% |
+————————-+——-+————+————+————+
|Non-Life technical ratio | 96.0% | 91.0% | 89.8% | 89.3% |
+————————-+——-+————+————+————+
|Non-Life cost ratio | 6.8% | 6.5% | 7.2% | 6.5% |
+————————-+——-+————+————+————+
|Life operating margin | 6.0% | 5.1% | 6.0% | 5.5% |
+————————-+——-+————+————+————+
|Return on Equity (ROE) | 7.7% | 10.6% | 11.9% | 10.5% |
+————————-+——-+————+————+————+
|Basic EPS (EUR) | 0.87 | 1.03 | 0.67 | 0.51 |
+————————-+——-+————+————+————+
| | | H1 2010 | H1 2010 | H1 2009 |
+————————-+——-+————+————+————+
| | |(unaudited) |(unaudited) |(unaudited) |
+————————-+——-+————+————+————+
|Investments (excl. |21 663 | 19 542 | | |
|participations) | | | | |
+————————-+——-+————+————+————+
|Reserves (gross) |23 194 | 20 848 | | |
+————————-+——-+————+————+————+
|Shareholders’ equity | 4 216 | 3 635 | | |
+————————-+——-+————+————+————+
|Book value per share | 23.2 | 20.2 | | |
|(EUR) | | | | |
+————————-+——-+————+————+————+

+————————-+————+————+-+————+
| | H1 2009 | Q2 2010 | | Q2 2009 |
+————————-+————+————+-+————+
| |(unaudited) |(unaudited) | |(unaudited) |
+————————-+————+————+-+————+
|Gross written premiums | | | | |
+————————-+————+————+-+————+
|Non-Life gross written | | | | |
|premiums | | | | |
+————————-+————+————+-+————+
|Life gross written | | | | |
|premiums | | | | |
+————————-+————+————+-+————+
|Operating income excl. | | | | |
|impairments | | | | |
+————————-+————+————+-+————+
|Net income | | | | |
+————————-+————+————+-+————+
|Investment income | | | | |
+————————-+————+————+-+————+
|Net Return on Investments| | | | |
+————————-+————+————+-+————+
|Net Return on Assets | | | | |
+————————-+————+————+-+————+
|Non-Life combined ratio | | | | |
+————————-+————+————+-+————+
|Non-Life technical ratio | | | | |
+————————-+————+————+-+————+
|Non-Life cost ratio | | | | |
+————————-+————+————+-+————+
|Life operating margin | | | | |
+————————-+————+————+-+————+
|Return on Equity (ROE) | | | | |
+————————-+————+————+-+————+
|Basic EPS (EUR) | | | | |
+————————-+————+————+-+————+
| | H1 2009 | Q2 2010 | | Q2 2009 |
+————————-+————+————+-+————+
| |(unaudited) |(unaudited) | |(unaudited) |
+————————-+————+————+-+————+
|Investments (excl. | | | | |
|participations) | | | | |
+————————-+————+————+-+————+
|Reserves (gross) | | | | |
+————————-+————+————+-+————+
|Shareholders’ equity | | | | |
+————————-+————+————+-+————+
|Book value per share | | | | |
|(EUR) | | | | |
+————————-+————+————+-+————+

Forward-looking statements

SCOR does not communicate “profit forecasts” in the sense of Article 2 of
(EC) Regulation n degrees809/2004 of the European Commission. Thus, any
forward-.looking statements contained in this communication should not be
held as corresponding to such profit forecasts. Information in this
communication may include “forward-looking statements”, including but not
limited to statements that are predictions of or indicate future events,
trends, plans or objectives, based on certain assumptions and include any
statement which does not directly relate to a historical fact or current
fact. Forward-looking statements are typically identified by words or
phrases such as, without limitation, “anticipate”, “assume”, “believe”,
“continue”, “estimate”, “expect”, “foresee”, “intend”, “may increase” and
“may fluctuate” and similar expressions or by future or conditional verbs
such as, without limitations, “will”, “should”, “would” and “could.” Undue
reliance should not be placed on such statements, because, by their
nature, they are subject to known and unknown risks, uncertainties and
other factors, which may cause actual results, on the one hand, to differ
from any results expressed or implied by the present communication, on
the other hand.

Please refer to SCOR’s document de reference filed with the AMF on 3
March 2010 under number D.10-00085 (the “Document de Reference”), for a
description of certain important factors, risks and uncertainties that
may affect the business of the SCOR Group. As a result of the extreme and
unprecedented volatility and disruption of the current global financial
crisis, SCOR is exposed to significant financial, capital market and
other risks, including movements in interest rates, credit spreads,
equity prices, and currency movements, changes in rating agency policies
or practices, and the lowering or loss of financial strength or other
ratings.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Senator calls for probe of BP tax plans

July 30, 2010 By Leave a Comment

(Reuters) – A senator from Florida called on Wednesday for a congressional inquiry into BP Plc’s plan to use losses from the Gulf oil spill to reap $10 billion in tax benefits.

Senator Bill Nelson said he wants a probe into whether BP, which announced on Tuesday a $32 billion charge linked to the clean-up, will be deducting legal expenses related to nondeductible fines and penalties, and whether BP should deduct the full cost of its $20 billion cleanup fund.

“I was appalled upon learning that BP intends to shift nearly $10 billion of the costs related to the Gulf oil spill to the backs of American taxpayers, including the very taxpayers whose lives have been devastated by the spill,” Nelson, a Democratic member of the tax-writing Senate Finance Committee, wrote to the panel’s chairman, Max Baucus.

Nelson urged Baucus to start a probe of the federal tax treatment of costs incurred by BP as a result of the spill.

Tax experts have said it would be natural for BP to deduct costs from the cleanup of the worst oil spill in U.S. history as a business expense.

Fines and penalties are usually not tax deductible.

Nelson mentioned the decision by Boeing Co to forgo tax benefits from a $615 million settlement over an ethics probe, under pressure from lawmakers.

He also said that Goldman Sachs group Inc is electing not to deduct its $550 million settlement recently announced with the U.S. Securities and Exchange Commission.

(Reporting by Kim Dixon; editing by Andre Grenon)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

BP’s Hayward to be offered role at TNK-BP: report

July 28, 2010 By Leave a Comment

(Reuters) – BP Plc Chief Executive Tony Hayward is to be nominated for a board position at its Russian venture TNK-BP when he steps down from his current role, Sky News reported, citing sources.

TNK-BP declined to comment on the Sky News report on Monday when contacted by Reuters.

BP is expected to install American Bob Dudley as CEO, sources close to the company said, replacing Hayward who has come under fire for his gaffe-prone handling of the worst oil spill in U.S. history.

Dudley, the U.S. executive managing the response operation to the spill in the Gulf of Mexico, is poised to get the top job in the next 24 hours, a move that could soften U.S. criticism of the British oil major.

Shares in BP closed up 4.6 percent at 417 pence, valuing the business at about 80 billion pounds ($123.6 billion).

(Reporting by Rhys Jones; Additional reporting by Vladimir Soldatkin; Editing by David Holmes)

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Hayward should still testify, Senator Menendez says

July 28, 2010 By Leave a Comment

(Reuters) – U.S. Senator Robert Menendez said on Monday he wants BP Chief Executive Tony Hayward to testify at congressional hearings examining if the British energy giant influenced the release of the convicted Lockerbie bomber to further its business interests.

“A new CEO won’t be useful to me because Tony Hayward is the person,” Menendez said at a press conference in New York when asked if he still wanted Hayward to testify in light of expectations that he will step in the next 24 hours.

Menendez will chair Thursday’s scheduled hearings at the U.S. Senate Foreign Relations Committee. U.S. politicians have expressed outrage at the release of convicted bomber and Libyan intelligence officer Abdel Basset al-Megrahi last year on grounds of compassion and want to know if BP played a role in the bomber’s release.

The case has become even more volatile since the oil spill in the Gulf of Mexico increased U.S. anger at BP. The four senators from New York and New Jersey have demanded the British government and the State Department investigate the circumstances under which Megrahi was freed on compassionate grounds but has not subsequently died, as was predicted.

(Reporting by Daniel Trotta, writing by Mark Egan, Editing by Sandra Maler)

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Factbox: Legislation spurred by oil spill

July 28, 2010 By Leave a Comment

(Reuters) – Following the Deepwater Horizon explosion in the Gulf of Mexico, U.S. lawmakers have introduced more than 80 bills related to the oil spill.

With the runaway well now capped and Congress nearing the August recess, many of the bills have yet to see action. Following are highlights of the legislation that has moved out of committees.

DRILLING REGULATION

Outer Continental Shelf Reform Act of 2010 (S.3516)

Sponsor: Jeff Bingaman, Senate Democrat from New Mexico; Lisa Murkowski, Senate Republican from Alaska; Byron Dorgan, Senate Democrat from North Dakota; Debbie Stabenow, Senate Democrat from Michigan

Status: Approved by Senate Energy and Natural Resources Committee

* Revamps the Outer Continental Shelf Lands Act

* Broadens Interior Department’s role in ensuring environmental and safety standards are met before oil companies receive offshore drilling leases and permits

Blowout Prevention Act of 2010 (H.R.5626)

Sponsor: Henry Waxman, House Democrat from California; Edward Markey, House Democrat from Massachusetts; Bart Stupak, House Democrat from Michigan

Status: Approved by House Committee on Energy and Commerce

* Expands regulation of all “high-risk” wells, both offshore and onshore

* Allows citizen lawsuits against oil producers

* Prohibits drilling without blowout preventers

Consolidated Land, Energy and Aquatic Resources (CLEAR) Act of 2009 (H.R. 3534)

Sponsor: Nick Rahall, House Democrat from Virginia

Status: Approved by House Committee on Natural Resources

* Prohibits oil companies with poor safety records from getting new offshore drilling leases

* Permits and leases would be denied for federal law violations such as worker deaths, large fines.

* Introduces specific guidelines to use of oil and gas royalties.

LIABILITY

Big Oil Bailout Prevention Liability Act (S.3305)

Sponsor: Robert Menendez, Senate Democrat from New Jersey; 23 co-sponsors

Status: Approved by Senate Environment and Public Works Committee

* Removes liability cap for offshore drilling making oil companies responsible for all cleanup costs and damages

* Requires detailed oil spill response plans and predictions of worst-case scenario impacts from oil companies

Oil Spill Accountability and Environmental Protection Act of 2010 (H.R.5629)

Sponsor: James Oberstar, House Democrat from Minnesota

Status: Approved by House Committee on Transportation and Infrastructure

* Removes the financial liability cap for oil companies

* Would require all oil rigs operated within 200 miles off the U.S. coast be owned by American citizens

SPILL PREVENTION AND CLEANUP

Department of Interior Research and Technologies for Oil Spill Prevention and Response Act (S. 3515)

Sponsor: Jeanne Shaheen, Senate Democrat from New Hampshire; Jeff Bingaman, Senate Democrat from New Mexico; Mark Udall, Senate Democrat from Colorado

Status: Approved by Senate Environment and Public Works Committee

* Requires the Interior Department to carry out in-depth research on oil spill prevention and response technology

* Directs Environmental Protection Agency to conduct a pilot program with demonstration in deep water

* Provides the program with $25 million from a trust fund

SPILL INVESTIGATION

Subpoena power for national commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling (H.R.5481)

Sponsor: Lois Capps, House Democrat from California

Status: Approved by the House of Representatives

* Authorizes President Barack Obama’s oil spill investigation commission to subpoena witnesses and records with approval from the U.S. Attorney General

* Allows Attorney General to prosecute those disobeying subpoenas.

(Compiled by Alina Selyukh; Editing by Sofina Mirza-Reid)

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Spill puts Obama’s oil fund chief on hostile turf

July 28, 2010 By Leave a Comment

Alabama (Reuters) – The man who acquired a solid gold reputation for fixing sticky situations for the U.S. government is facing one of his toughest challenges yet: running BP Plc’s $20 billion compensation fund.

Kenneth Feinberg, lawyer extraordinaire, was in charge of compensating victims’ families after the September 11, 2001 attacks and presided over executive pay at bailed-out Wall Street firms.

But the job President Barack Obama has asked him to do — deciding who will be compensated from BP’s catastrophic oil spill in the Gulf of Mexico — is placing Feinberg in hostile territory where residents are still reeling from the federal government’s bungled response to Hurricane Katrina.

Many areas in Louisiana and Mississippi never recovered from the 2005 hurricane. Buildings are gutted. Broken boats lie in marshes.

Now many of the same residents who were left to fend for themselves after Katrina are seeing their fishing and tourism industries fall apart from the oil spill.

“Feinberg is full of baloney. He is a lawyer and that is how lawyers talk. I do not believe a word he says,” Delane Seaman said after attending one of Feinberg’s town hall meetings in Bayou La Batre on Sunday.

“BP is telling us we will be compensated for 100 percent loss of our oyster processing business, too. It will not happen,” Seaman said.

‘I AM YOUR LAWYER’

In Bayou La Batre, a small fishing community in south Alabama, Feinberg convened an early-morning session on Saturday to listen to residents’ concerns and answer questions on the claims process.

“I learned today the depth of frustration in people here on the coast,” a visibly-tired looking Feinberg said. “I am your lawyer. I do not work for BP. I do not work for the White House. I work and answer to the residents of the Gulf.”

Feinberg’s compensation for running the fund — which has not been disclosed — is being paid by BP.

BP’s blown-out well is capped. The energy giant had been expected to permanently stop the leak by mid-August, but a storm in the region slowed efforts.

Thousands of fishermen, oyster processors and other seafood industry workers have lost work because of the oil spill.

Feinberg must decide how much they get paid as well as how to compensate businesses related to the fishing and tourism industries and whether real estate brokers and bankers should be included.

As of mid-July $201 million was dispensed to workers and businesses in the region from the fund that so far has been run by BP. Feinberg expects to assume complete control of the fund by August 10.

He has said claims can be filed over lost wages and profits, business interruption as well as personal injuries.

Coastal tourism from Louisiana to Miami accounts for $100 billion per year, according to the New Orleans Metropolitan Convention and Visitors Bureau. The fishing industry accounts for $2.4 billion a year in Louisiana.

If most of the waters remain closed, the fishing industry could be wiped out. Tourism losses are just as dire. One study suggests that the tourism industry in the Gulf of Mexico could lose $22.7 billion in revenues over the next three years.

DEEP ANGER

In Venice, Louisiana, home to a popular North American fishing destination, workers had little faith in the Obama administration and Feinberg.

“Look at what happened with Katrina,” said Bill Butler, co-owner of the Venice Marina, which was ravaged by the 2005 hurricane.

Butler’s marina has been rebuilt. But the oil spill has transformed it from a haven for commercial and sports fishing to a staging area for the cleanup.

In the fishing town of Lafitte, Louisiana, locals cast sideways glances at each other when asked about Feinberg and refused to comment.

Instead they talked about help they had received from BP, which residents say has hired a good bulk of the small community. “Overall there is trust in BP,” said Lafitte resident Barbara Martin. “At least they’ve done more than the federal government.”

Residents in Mississippi and Alabama were similarly dubious about the fund’s chief.

“Feinberg says he is thinking about some issues but I just want to know who is paying him. That is where the truth will be concerning the fairness of claims being paid,” said Wu Lin, an out of work fisherman from Biloxi, Mississippi.

Another Biloxi resident, Curtis Fournier, said: “Can I trust him? He is a lawyer. What do you think?”

(Younglai reported from Venice, Louisiana, editing by Chris Baltimore and Vicki Allen)

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UPDATE 1-Dalian resumes operations at two oil berths

July 26, 2010 By Leave a Comment

HONG KONG, July 25 (Reuters) – Dalian Port Co. (2880.HK) has resumed operations at two of its oil berths and its main 300,000 tonnage berth is expected to reopen soon, the company said on Sunday, after a fire at the port a week ago shut the berths down.

Normal operations resumed at oil berths No.1 and No.2 on Sunday, the company said in a statement to the Hong Kong stock exchange.

The company expects its No.0 berth, able to dock large 300,000-tonne crude carriers, will also return to normal operation soon, the statement said.

No.1 berth handles mainly crude oil and has a berthing capacity of 150,000 dead weight tonnage (dwt) and No.2 handles both crude and refined oil and has a capacity of 80,000 dwt.

A Dalian-based shipping official told Reuters earlier on Sunday that because oil spill clean-up was still under way, ships that were able to dock at some of the berths since mid-last week had to be cleaned first before loading or offloading, meaning the traffic would stay low.

Refinery operations have been disrupted and cargoes diverted since a pipeline explosion and fire hit the Xingang port, home to a 19 million barrel strategic petroleum reserve, during a tanker offloading over a week ago, spilling 1,500 tonnes of crude into the sea to leave a slick covering 183 sq km (71 sq miles).

The fire damaged two main crude pipelines that are linked to the largest berth as well as a 100,000 cubic metre oil tank, which industry officials have estimated will take weeks to fully repair. (Additional reporting by Aizhu Chen; editing by Karen Foster)

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UPDATE 1-Technip keeps targets after Q2 earnings drop

July 23, 2010 By Leave a Comment

PARIS, July 22 (Reuters) – French oilfield services company Technip (TECF.PA) posted an 8.7 percent drop in second-quarter net profit on Thursday after subsea sales fell almost one-fifth.

Chief Executive Thierry Pilenko said the group remained on track to meet its 2010 earnings targets, however, helped by a pickup in the North Sea, growth in Brazil and strong prospects in the Middle East and Asia. Net income fell to 106 million euros ($135.3 million) in the second quarter from 116 million in the year-earlier quarter, the company said in a statement. Sales fell 14 percent to 1.48 billion, of which 688 million came from subsea.

The company carries out infrastructure projects mostly for oil companies in the onshore, offshore and subsea sectors, and has 23,000 staff in 48 countries. It expects to have a fleet of 19 vessels by 2011.

The BP (BP.L) oil spill in the Gulf of Mexico has not had an impact on Technip so far, meanwhile, CEO Pilenko said, though he added that it was difficult to predict the repercussions.

U.S. authorities said last month that Technip agreed to pay $338 million to settle U.S. allegations involving a scheme to bribe Nigerian government officials for contracts to build liquefied natural gas facilities there. [ID:nN28265604]

In February, Technip set aside some $300 million for possible fines in the case.

Shares in the group have fallen slightly so far this year, giving the company a market value of around 5.3 billion euros. ($1=.7836 Euro) (Reporting by James Regan; Editing by Hans Peters)

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Court order halts Chukchi oil and gas activity

July 23, 2010 By Leave a Comment

ANCHORAGE, Alaska, July 21 (Reuters) All activity on oil and gas leases in the Chukchi Sea off northwestern Alaska must cease until federal regulators complete a review of how the drilling would impact the environment, a federal judge in Anchorage ruled Wednesday.

U.S. District Court Judge Ralph Beistline, ruling in a lawsuit filed by several environmental and Alaska Native organizations, said the Minerals Management Service failed to abide by federal environmental law when it sold $2.66 billion worth of leases in the Chukchi in 2008, mostly to Royal Dutch Shell RDS.A.

The MMS, now reorganized and renamed the Bureau of Ocean Energy Management, regulation and Enforcement, must complete a more thorough evaluation before allowing any work to resume, Beistline said.

The agency must conduct a study of potential impacts of natural gas development, which was omitted entirely because the pre-sale review considered only oil development, and make a good-faith effort to supply important environmental information that remains missing, he said.

The plaintiffs, who filed the lawsuit in 2008, said the ruling was an important victory.

The Chukchi lease sale “was the product of the same broken system that led to poor oversight of BP’s drilling operations,” Michael Brune, Sierra Club executive director, said in a joint statement released by the plaintiffs.

“The past few months have taught us all a painful lesson about the risks of offshore drilling. An oil spill in the Arctic’s broken sea ice would be impossible to respond to. A spill would be the nail in the coffin for Arctic communities and wildlife like polar bears, which are already struggling to survive. And where there is offshore drilling, there are oil spills. This lease sale never should have happened,” Brune said in the statement.

The Chukchi is believed to hold about 15 billion barrels of recoverable oil and 76 trillion cubic feet of natural gas, according to recent Interior Department estimates. But the remote and usually ice-choked area, which lies between Alaska and Siberia, has barely been touched by energy companies. Only five exploration wells have ever been drilled in the Chukchi and they were completed about two decades ago.

Shell now has ambitious plans to develop the Chukchi, along with the Beaufort Sea off northern Alaska, as major new oil basins. The company had intended to drill up to three exploration wells in the Chukchi and two in the Beaufort this summer and fall, but President Obama suspended offshore Arctic drilling permits in the aftermath of the BP Deepwater Horizon disaster.

A Shell spokesman said the company was evaluating whether Beistline’s decision would affect its Alaska program.

We are still analyzing the ruling and how it might impact our 2010 planned operations as well as our aspirations to drill in 2011,” said Curtis Smith, Shell’s spokesman in Anchorage.

“These are regulatory breaches, not necessarily environmental concerns,” he added.

The Bureau of Ocean Energy Management, Regulation and Enforcement was also evaluating Beistline’s decision, a spokesman said.

“Both in Anchorage and in Washington, we’re very carefully reviewing the judge’s decision,” said John Callahan, spokesman for the agency’s Alaska office.

Although Shell is the only company that has submitted drilling plans for Chukchi, ConocoPhillips (COP.N), Statoil (STO), Repsol (REP.N) and Eni (ENI.N) also bought leases in the 2008 sale. ConocoPhillips and Statoil have struck a deal to jointly develop some leases, and Statoil has applied for permission to conduct seismic surveys this year. (Editing by Manash Goswami)

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Q+A: Will BP spill taint Cameron’s U.S. visit?

July 21, 2010 By Leave a Comment

(Reuters) – David Cameron is making his first trip to the United States as British prime minister on Tuesday and Wednesday, a visit expected to be overshadowed by the BP Plc oil spill in the Gulf of Mexico.

Cameron will meet President Barack Obama, Vice President Joe Biden and congressional leaders then travel to New York for talks with business leaders and at the United Nations.

Here are some questions and answers about the visit.

WILL OBAMA AND CAMERON DISCUSS THE SPILL?

The two leaders will address a range of issues that will definitely include the oil spill, aides say.

White House spokesman Robert Gibbs said they would discuss issues including Afghanistan, the global economy and the Middle East, with Afghanistan “first and foremost” on the list.

The two men have discussed the spill during two of their three telephone conversations to date and it came up during their first face-to-face meeting since Cameron became prime minister in May, during the Group of Eight and Group of 20 meetings in Canada last month.

“The conversation is likely to be drawn into a larger discussion about BP on two fronts,” wrote Heather Conley and Rick Nelson of the Center for Strategic and International Studies in Washington.

The first, they said, is ensuring BP cleans up, compensates residents and restores the Gulf Coast after the disaster while remaining financially solvent.

They also said Obama and Cameron were likely to discuss whether the British oil giant had any influence over the release of the Lockerbie bomber, Abdel Basset al-Megrahi, from a Scottish prison last year.

WILL THE LOCKERBIE BOMBER COME UP?

Cameron’s office has tried to play down the concern, saying the U.S. debate over how the ill Libyan convicted of the 1988 bombing of a Pan Am flight was allowed to return home “may come up” but is not a “major issue.”

BP has confirmed it lobbied the British government in late 2007 over a prisoner transfer agreement with Libya but said it was not involved in talks on the release of al-Megrahi, which was strongly opposed by the Obama administration.

“Our viewpoint on this case last year was well-known and that was we opposed the release of the Lockerbie bomber. We made that opinion known,” Gibbs said, noting that Cameron — who was not prime minister when Megrahi was sent to Libya — also opposed the release.

But Gibbs said he expected the issue would come up in some form between Obama and Cameron, who said on BBC television: “I’ve no idea what BP did. I’m not responsible for BP.”

U.S. lawmakers have demanded an investigation but Cameron’s office said it had no plans to re-examine the case. “That will be up to the British government to determine,” Gibbs said.

The four U.S. senators from New York and New Jersey who want an investigation have been invited to meet Cameron on Tuesday night.

“He understands the strengths of feelings on this issue,” Cameron’s spokesman said.

WILL BP AFFECT THE “SPECIAL” RELATIONSHIP?

Washington and London have had their differences over the BP spill since it started in late April.

Obama has sought to convince Americans he is taking a tough stance against the giant oil firm to ensure it pays for the worst oil spill in U.S. history. And Cameron has said he will stand up for BP in Washington, worried that the firm could face unreasonable compensation claims from businesses and families affected by the spill.

But the disaster is not expected to put a long-term damper on the vaunted “special relationship” between the United States and Britain — at least as long as a new cap on the well holds and the cleanup goes well.

Obama and Cameron were eager to display their closeness when they met in Canada last month. Obama gave the new prime minister a ride in his helicopter and the two held a separate bilateral meeting in Toronto, at which they exchanged beers related to a bet over World Cup soccer.

Cameron’s Conservative-Liberal Democrat coalition government is aware Britain needs to build other special ties to maintain its influence and help its economy bounce back from recession. But Cameron is an outspoken fan of the American way of life and is not likely to distance himself from Washington.

In developing his relationship with Obama, the Conservative prime minister is likely to seek middle ground between what was seen as former Labour Prime Minister Tony Blair’s subordinate “poodle” relationship with former U.S. President George W. Bush and the businesslike tone set by Gordon Brown, the Labour prime minister who preceded Cameron, the CSIS experts said.

The tone also could be affected by the cool personal style of Obama, who is not known for warm personal relationships with other world leaders.

(Editing by Patricia Wilson and John O’Callaghan)

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BP says oil spill bill nears $4 billion

July 20, 2010 By Leave a Comment

(Reuters) – BP said it had spent $3.95 billion so far on efforts to tackle its leaking oil well in the Gulf of Mexico and that it aims to permanently kill the well in the first half of August.

BP said in a statement on Monday it continued to run an integrity test on the well, on which it placed a cap last week that appeared to seal the well and that pressure continued to rise.

The statement did not refer to oil seeps detected near the well, which the government’s top oil spill official said on Sunday engineers had detected.

(Reporting by Tom Bergin; Editing by David Holmes)

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UPDATE 1-BP says oil spill bill nears $4 bln

July 20, 2010 By Leave a Comment

July 19 (Reuters) – BP (BP.L) said it had spent $3.95 billion so far on efforts to tackle its leaking oil well in the Gulf of Mexico and that it aims to permanently kill the well in the first half of August.

BP said in a statment on Monday it continued to run an integrity test on the well, on which it placed a cap last week that appeared to seal the well and that pressure continued to rise.

The statement did not refer to oil seeps detected near the well, which the government’s top oil spill official said on Sunday engineers had detected. [ID:nN18131133] (Reporting by Tom Bergin; Editing by David Holmes)

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BP says oil spill bill nears $4 bln

July 20, 2010 By Leave a Comment

July 19 (Reuters) – BP (BP.L) said it had spent $3.95 billion so far on efforts to tackle its leaking oil well in the Gulf of Mexico and that it aims to permanently kill the well in the first half of August.

BP said in a statment on Monday it continued to run an integrity test on the well, on which it placed a cap last week that appeared to seal the well and that pressure continued to rise.

The statement did not refer to oil seeps detected near the well, which the government’s top oil spill official said on Sunday engineers had detected. [ID:nN18131133] (Reporting by Tom Bergin; Editing by David Holmes)

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China closes oil port after spill; PetroChina cuts output

July 20, 2010 By Leave a Comment

July 19 (Reuters) – China closed the Xingang oil port in Dalian after a crude pipeline explosion that spilled oil into the sea, an oil industry executive said on Monday.

PetroChina (0857.HK), which operates two major refineries and a major crude reserve base there, has set up a contingency plan for oil supplies to cope with one week’s port closure, including scaling back refinery operations at one of the plants, the executive told Reuters.

(Reporting by Chen Aizhu; Editing by Ken Wills)

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Talk persists of Bloomberg US presidential run

July 19, 2010 By Leave a Comment

BOSTON, July 18 (Reuters) – New York City Mayor Michael Bloomberg, one of the richest men in America, says his views are too polarizing for him to become president of the United States.

But analysts say however much he may protest, conditions may be gelling for Bloomberg, who came close to standing for the White House in 2008, to run in 2012 as an independent.

Voter distaste for both the Democratic and Republican parties and perceptions of government incompetence on big issues, from the Iraq war to the Gulf oil spill, could herald a new chance for the three-term mayor.

“He’s got the right climate and he’s got the money. Resources are always an issue for third-party candidates, but Bloomberg has got that covered,” said Tom Jensen, director of Public Policy Polling in Raleigh, North Carolina.

Bloomberg, 68, is a fiscal conservative with liberal social views who is formally an independent. He combines proven political skills with business acumen and has drawn high ratings for his job running New York City.

It is two-and-a-half years before the next presidential election in November 2012. Democrat Barack Obama is expected to seek a second term but is now struggling with low polling numbers and the Republican field is wide open.

TEASING ANSWERS

At a speech in New Hampshire on Friday, Bloomberg, as he always does, dismissed suggestions that he intends to run but failed to kill the speculation.

“Only my girlfriend and my mother would support me. And I’m not sure about my mother,” he quipped. “If the press is in the back — no, I’m not running. I want to make that clear.”

Still, the comments, and the speech’s setting, did little to silence the buzz.

Bloomberg was kicking off a “presidential lecture series” (actually named for the president of Dartmouth College, who was present) in the state which traditionally holds the first primary vote in the presidential election.

White House hopefuls often visit New Hampshire to test the waters for their campaign long before the election.

Asked about a presidential bid, Bloomberg said his liberal views on issues like abortion and gay rights were out of the current American mainstream.

“I’m pro-choice. I’m pro-gay rights. I’m pro-immigration, I’m pro-gun control. I believe in Darwin,” he said. These views are anathema to many in a Republican Party that is increasingly conservative and laced with fundamental Christian beliefs.

Bloomberg has said he is committed to serving as mayor until his term ends in 2013 and would then leave politics and become a full-time philanthropist.

But it did not go unnoticed that Bloomberg has employed as a political strategist Howard Wolfson, who served as a senior aide on Hillary Clinton’s 2008 presidential bid.

BLOOMBERG’S WEALTH

Bloomberg is the founder of Bloomberg LP, the financial news and media company. Forbes magazine estimates his net worth at $18 billion, the eighth-highest in the United States.

“Bloomberg has a really strong competency argument. The approval rates for both parties are in the 20 to 30 percent range now, extremely low. The climate right now is perfect for someone like Bloomberg to run,” Jensen said.

A lifelong Democrat who turned Republican to run for New York mayor in 2001, Bloomberg left the Republican Party to become an independent in 2007, a move some interpreted then as preparation for a presidential run.

“A successful mayor of New York with lots of resources and lots of ambition should never be counted out,” said Charles Franklin, political science professor at the University of Wisconsin in Madison and co-founder of pollster.com.

Jensen compared a potential Bloomberg 2012 run to the U.S. Senate campaign of Florida Governor Charlie Crist, a Republican who decided to run as an independent after polls showed him trailing another, more conservative Republican.

The last significant third-party presidential bid was by Texas businessman Ross Perot, who received 18.9 percent of the popular vote — about 19.7 million votes — in the 1992 election won by Bill Clinton. He won 8 percent in 1996.

Unlike Perot, Bloomberg brings with him a track record of winning elections. A Quinnipiac University poll published June 30 showed him with a 57 percent to 33 percent approval rating as New York’s mayor. (Editing by Daniel Trotta and David Storey)

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BP says “hopeful” well can stay shut indefinitely

July 19, 2010 By Leave a Comment

(Reuters) – BP Plc is “hopeful” that its blown-out well in the Gulf of Mexico can remain sealed until a pair of relief wells permanently stop the flow, a company executive said on Sunday.

BP is more than two days into a pressure test on its crippled Macondo well, which had been described as a temporary measure to stop oil from gushing into the Gulf while engineers study pressure within the well.

Now, BP officials say they want to keep the well sealed in until they finish a pair of relief wells that are eventually meant to permanently seal the well, or “kill” it, with heavy mud and cement. BP says the relief wells will likely be complete by mid-August.

“We’re hopeful that if the encouraging signs continue that we’ll be able to continue the integrity test all the way to the point that we get the well killed,” Doug Suttles, BP’s chief operating officer, told reporters on a conference call.

“Right now there is no target set to open the well back up to flow,” Suttles said. “Clearly we don’t want to re-initiate flow into the Gulf if we don’t have to.”

The U.S. government has yet to approve BP’s plan. On Saturday, the top U.S. oil spill official said the pressure test was temporary and meant to clarify options for sealing off the well in the event of a hurricane.

After completing the test, BP would open valves on the containment cap to allow oil to temporarily flow into the sea while it repositioned vessels on the surface which would siphon up the oil, retired Coast Guard Admiral Thad Allen said in a statement on Saturday.

(Editing by Doina Chiacu)

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BP says ‘hopeful’ well can stay shut indefinitely

July 19, 2010 By Leave a Comment

HOUSTON, July 18 (Reuters) – BP Plc (BP.L) (BP.N) is “hopeful” that its blown-out well in the Gulf of Mexico can remain sealed until a pair of relief wells permanently stop the flow, a company executive said on Sunday.

BP is more than two days into a pressure test on its crippled Macondo well, which had been described as a temporary measure to stop oil from gushing into the Gulf while engineers study pressure within the well.

Now, BP officials say they want to keep the well sealed in until they finish a pair of relief wells that are eventually meant to permanently seal the well, or “kill” it, with heavy mud and cement. BP says the relief wells will likely be complete by mid-August.

“We’re hopeful that if the encouraging signs continue that we’ll be able to continue the integrity test all the way to the point that we get the well killed,” Doug Suttles, BP’s chief operating officer, told reporters on a conference call.

“Right now there is no target set to open the well back up to flow,” Suttles said. “Clearly we don’t want to re-initiate flow into the Gulf if we don’t have to.”

The U.S. government has yet to approve BP’s plan. On Saturday, the top U.S. oil spill official said the pressure test was temporary and meant to clarify options for sealing off the well in the event of a hurricane.

After completing the test, BP would open valves on the containment cap to allow oil to temporarily flow into the sea while it repositioned vessels on the surface which would siphon up the oil, retired Coast Guard Admiral Thad Allen said in a statement on Saturday.

(Editing by Doina Chiacu)

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UPDATE 1-BP says ‘hopeful’ well can stay shut indefinitely

July 19, 2010 By Leave a Comment

HOUSTON, July 18 (Reuters) – BP Plc (BP.L) (BP.N) is “hopeful” that its blown-out well in the Gulf of Mexico can remain sealed until a pair of relief wells permanently stop the flow, a company executive said on Sunday.

BP is more than two days into a pressure test on its crippled Macondo well, which had been described as a temporary measure to stop oil from gushing into the Gulf while engineers study pressure within the well.

Now, BP officials say they want to keep the well sealed in until they finish a pair of relief wells that are eventually meant to permanently seal the well, or “kill” it, with heavy mud and cement. BP says the relief wells will likely be complete by mid-August.

“We’re hopeful that if the encouraging signs continue that we’ll be able to continue the integrity test all the way to the point that we get the well killed,” Doug Suttles, BP’s chief operating officer, told reporters on a conference call.

“Right now there is no target set to open the well back up to flow,” Suttles said. “Clearly we don’t want to re-initiate flow into the Gulf if we don’t have to.”

The U.S. government has yet to approve BP’s plan. On Saturday, the top U.S. oil spill official said the pressure test was temporary and meant to clarify options for sealing off the well in the event of a hurricane.

After completing the test, BP would open valves on the containment cap to allow oil to temporarily flow into the sea while it repositioned vessels on the surface which would siphon up the oil, retired Coast Guard Admiral Thad Allen said in a statement on Saturday.

(Editing by Doina Chiacu)

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China’s CNPC seeks to contain oil spill after pipe blast

July 19, 2010 By Leave a Comment

(Reuters) – China’s largest oil company, China National Petroleum Corp (CNPC), sought to contain ocean pollution and other impacts from an explosion of two crude oil pipelines in the northeastern port of Dalian, state media reported on Sunday.

Hundreds of firefighters battled for more than 15 hours to extinguish the blaze that started late on Friday when a pipe transporting crude oil from a ship to a storage tank blew up, causing a second pipeline nearby to explode.

There were no casualties, but state television CCTV reported that oil had contaminated a 50 sq km area of the ocean off the port city in Liaoning Province.

Xinhua, citing company officials, said a valve had been closed and oil had stopped leaking into the sea, adding that the spill area had been “fenced off and contained.”

But it was not immediately clear how much oil had leaked into the sea.

Calls to the company on Sunday went unanswered.

CNPC, the parent of PetroChina, said that monitoring of the air and sea environment had been stepped up in the affected areas.

The incident drew the attention of top Chinese officials, including President Hu Jintao, Premier Wen Jiabao and security chief Zhou Yongkang, who all issued statements and instructions during the blaze.

The cause of the blast was under investigation.

(Reporting by Ken Wills; Editing by Jeremy Laurence)

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China’s CNPC seeks to contain oil spill after pipe blast

July 19, 2010 By Leave a Comment

July 18 (Reuters) – China’s largest oil company, China National Petroleum Corp (CNPC), sought to contain ocean pollution and other impacts from an explosion of two crude oil pipelines in the northeastern port of Dalian, state media reported on Sunday.

Hundreds of firefighters battled for more than 15 hours to extinguish the blaze that started late on Friday when a pipe transporting crude oil from a ship to a storage tank blew up, causing a second pipeline nearby to explode. [ID:nTOE66G007]

There were no casualties, but state television CCTV reported that oil had contaminated a 50 sq km area of the ocean off the port city in Liaoning Province.

Xinhua, citing company officials, said a valve had been closed and oil had stopped leaking into the sea, adding that the spill area had been “fenced off and contained”.

But it was not immediately clear how much oil had leaked into the sea.

Calls to the company on Sunday went unanswered.

CNPC, the parent of PetroChina (PTR.N)(0857.HK), said that monitoring of the air and sea environment had been stepped up in the affected areas.

The incident drew the attention of top Chinese officials, including President Hu Jintao, Premier Wen Jiabao and security chief Zhou Yongkang, who all issued statements and instructions during the blaze.

The cause of the blast was under investigation.

(Reporting by Ken Wills; Editing by Jeremy Laurence)

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