Finance - British Petroleum Essay Example | Topics and Well Written Essays - 2000 words

Finance - British vegetable oil - Essay ExampleThere were umteen reasons that affected the BP make do prices during beginning of 2011. The issue that had highly impacted the BP share prices was the decision interpreted by Transocean Ltd after conducting an internal investigation. Transocean Ltd is the worlds largest offshore drilling contractor whom the BP had contract with. They provide the well-nigh versatile fleet of mobile offshore drilling machineries to assist customers find and utilise efficiently embrocate and natural gas reserves. Transocean Ltd announced on June 22, 2011 the release of an internal investigation report illustrating the reasons behind the enlargement on the Deepwater Horizon rig on April 20, 2010. Transocean operated and owned the Deepwater Horizon rig that was drilling on the petroleum color well in the gulf of Mexico and their report had an impact on the BP prices the following weeks. In the opinion of Transocean, HP was to be held accountable for t he disaster at the rigs as HP was controlling the drilling process at the oil well. The report explains that some of the inaccurate decisions made by HP solvented in the massive gush on the oil well. According to the findings of the report the reason behind the explosion was the preparing a wrong foundation of the well, which was carried out by BP, together with an ineffective cement program. The guardian reports this the explosion and the oil spill was the result of a succession of well design, construction, and temporary abandonment decisions that compromised the integrity of the well and compounded the risk of its calamity the Swiss firm, Transocean Ltd, also said that many of the decisions were made by well owner BP in the cardinal weeks before the incident (The Guardian, 2011). Lacombe (2011) said that the report of Transocean can affect the BP share prices as it indicated that the decisions of BP included restricting of the geological window in order to keep the drilling safe. Moreover, at the end of the week the BP share prices had declined to around 437.15p (Yahoo Finance, 2011). However, after the sudden decline in the BP share price due to the Transocean report, the company was seen well-situated in the market. Weatherford International was the first contractor whom the British Petroleum had been in familiarity with at the Macondo oil well, and the business association continued for quite a long time. And when the financial management of the Weatherford International had taken the decision to clear all the conciliatement claims with the British Petroleum, the decision created a swell effect on the PB share prices. In fact, Weatherford International was the first contractor whom the company was intending to make settlement with, and it was of great significance as the settlement process was moving forward and would potentially create a peremptory effect on BP share prices. Moreover, the financial management of the company decided to clear a ll its association at the Macondo oil well which has been the prime target at the oil spill at the Gulf of Mexico during last year. As Lacombe (2011), points out, when the good news about the Weatherford Internationals settlement with British Petroleum at Macondo oil well was spread around, the BP share prices increased by 16.1p and was closed at 445.7p. apart(predicate) form these, Mitsui of Japan, one of the minority partners of the BP Company at the oil well, also made the decision to settle its claims with the company soon after the Weatherford I