BP CEO tells investors that cleanup, containment costs for Gulf oil spill will be ’severe’

BP: cleanup costs for oil spill will be ’severe’

LONDON — BP PLC Chief Executive Tony Hayward says that cleanup and containment costs for the Gulf of Mexico oil spill will be “severe” but has declined to put a figure on the total bill.

In a briefing to investors Friday, Hayward said he expects costs to continue at current rates — they have topped $1 billion pounds since the Deepwater Horizon rig explosion six weeks ago — until well after the company stops the flow of oil.

Company executives are striking a penitent note in the webcast update to shareholders, stressing their commitment to restoring BP’s tarnished reputation, improving safety measures and restoring the damaged Gulf coast.

Hayward says that the spill could impact production by 50,000 barrels per day in 2011.