BP Share News (BP.)

THE NEWS U.S. lawmakers on Thursday blasted BP PLC (BP, BP.LN) Chief Executive Tony Hayward on safety standards, with the CEO saying he was "not involved" in key decisions about the mile-deep oil well that blew out in April. Hayward also deflected attempts by lawmakers to determine whether his company made poor decisions in the days and weeks before the Deepwater Horizon oil spill in the Gulf of Mexico. "I'm not prepared to draw conclusions about this accident," Hayward said, adding later, "I wasn't involved in any of the decision making." Rep. Bart Stupak (D., Mich.) admonished Hayward for his answers, saying the committee had granted him extra time to prepare for the hearing. Stupak added, "I hope you'll be more forthcoming and less evasive." THE ACCUSATIONS House Energy and Commerce Committee Chairman Henry Waxman (D., Calif.) blasted the CEO, saying congressional investigators "found no evidence that you paid any attention to the tremendous risks BP was taking." Lawmakers have cited emails from BP officials in accusing the company of taking shortcuts on safety and ignoring the advice of key contractors. The oil spill began after the Deepwater Horizon drilling rig exploded and sank in April, killing 11 workers and unleashing the worst offshore oil spill in U.S. history. HAYWARD RESPONDS Hayward, sworn in under oath, told the committee that the situation is "a tragedy" and said "I deeply regret" the impact the spill has had on people and the environment. He said that while "we don't yet know" the causes of the April 20 blowout, the company is "doing everything we can" to secure the well and "we will make this right." He added federal regulators had signed off on BP's well design, offering a preview of the company's defense as it faces Justice Department, civil and criminal investigations. THE FUND In an effort to earn back goodwill, BP on Wednesday agreed to put $20 billion into a fund to compensate businesses and individuals hurt by the spill. BP will reduce capital spending, suspend its dividend and sell assets to raise the cash. The move to halt the dividend could cost BP shareholders, many of them U.K. pension funds, roughly $7.5 billion during the next three quarters. EFFORTS TO STOP THE LEAK A second BP containment system has begun collecting oil. U.S. Coast Guard Adm. Thad Allen said that vessel would add 2,000 to 3,000 barrels a day to the amount captured by the main vessel connected to the leak, bringing the total amount to between 16,000 and 17,000 barrels a day. Scientists have estimated 35,000 to 60,000 barrels of oil are flowing into the Gulf each day. Allen said BP hopes to increase the capture capacity to 28,000 barrels a day by early next week, 53,000 barrels by the end of June and, if needed, 60,000 to 80,000 barrels by the end of July. Efforts to drill a relief well--through which BP would pump cement to plug the leak--are progressing "ahead of schedule," Allen said. The target date for completing the effort is mid-August. MARKET REACTION BP's American depositary shares fell 32 cents in recent trading to $31.53. BP has lost nearly half its market value since April. In London, BP shares rose 6.7% to 359.70 pence on hopes the $20 billion deal would ease the political heat on BP. The most active BP bond, the 1.55% note due August 2011, saw its spread over Treasurys creep marginally wider. The cost of insuring BP's debt declined on news of the agreement with the U.S. Credit default swaps were quoted by Markit at 465 basis points, meaning it would cost $465,000 to cover $10 million of debt each year for five years. That's down from Wednesday's all-time high of 625 basis points before BP announced the fund and its dividend cut. DOW JONES COVERAGE -BP CEO Hayward: 'Not Prepared To Draw Conclusions' About Accident -BP's Hayward: Key Decision Partly About Focus On Well Integrity -US Rep Waxman Blasts BP CEO At Congressional Hearing -WSJ: BP Agrees To $20 Billion Fund -Adm. Allen: Could Capture 28,000 B/D Of Oil By Early Next Week -BP Shares Surge After $20B Oil Spill Fund Deal -For more coverage of the oil spill, please search under the code BP. (END) Dow Jones Newswires June 17, 2010 14:28 ET (18:28 GMT)