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Legal News

Experts double estimate of oil spill

BP's chairman Carl-Henric Svanberg has been summonded to the White House next week to meet President Obama and other US officials. The British company is coming under increasing pressure from the American administration as the extent and severity of the oil spill in the Gulf Coast becomes clearer. It is now thought the amount of oil that has leaked into the gulf could be double previous estimates. Oil has been leaking into the Gulf since the Deepwater Horizon rig exploded on April 20th and sank off the coast of the Louisiana, killing 11 workers.

As many as 1.7 million gallons of oil a day may have been gushing out from a blown-out Gulf of Mexico well, doubling many estimates. The US Geological Survey says that flow rate could have been reached before a cap was put on the well on June 3rd.

The increasingly hostile situation has led to Britain's Prime Minister David Cameron confirm he will be talking to President Obama over the weekend.

The meeting will be held amid growing worry about whether BP would have enough money to pay for the clean-up operation and compensation for those affected. US Attorney General Eric Holder has stated that BP would be held responsible for all damages, it has also been suggested that BP should be forced to suspend dividend payments until it is clear the company has enough cash.

This news has raised concerns in the UK, where BP's dividends form a crucial part of pension fund payments for millions of Britons.