Crunch dividend meeting for BP directors

BP's board will discuss the option of suspending the latest tranche of a 7bn payout to shareholders as a consequence of the environmental catastrophe which has sent a slick of oil along the US coast from Louisiana to Florida.

Today's crunch meeting comes after US President Barack Obama spoke to the Prime Minister on Saturday to defuse the growing political row and reassure him criticism about the firm's response to the April 20 explosion, which killed 11 workers, were "nothing to do with national identity".

Despite its various attempts, BP has been unable to plug the ruptured underwater pipe, which scientists have estimated has released anywhere between about 40 million gallons (150 million litres) and 109 million gallons (412 million litres) of oil into the Gulf.

The company has come under fierce US pressure to postpone the dividend payment so bosses can concentrate on cleaning up the oil spill.

But such a move could deal a big blow to pensions in the UK, as BP is estimated to account for 1 in every 7 of dividends paid to British shareholders.

Mr Obama has come under fire in the UK over perceptions his outspoken attacks on a company he has referred to as "British Petroleum" had an anti-British tone which could harm relations between the countries.

Senior figures in the City as well as London mayor Boris Johnson have urged the PM to come to the defence of BP amid fears that Mr Obama's comments were driving down its share price and putting British pensions at risk.

In a statement released by Downing Street after Saturday's talks, the Government said Mr Obama made clear that he recognised that BP was a global company and said he had no interest in undermining its value.

Mr Cameron expressed his "sadness" at the continuing human and environmental damage being done by the tens of thousands of gallons of oil leaking from the Deepwater Horizon rig.

BP chairman Carl-Henric Svanberg, who has faced criticism for not being more visible in BP's response to the Gulf spill, is scheduled to meet Mr Obama at the White House on Wednesday and is likely to be accompanied by chief executive Tony Hayward and other BP executives. It will be the first time he has met BP officials since the crisis began though the President has visited Louisiana three times since the explosion and is expected to return this week.

Mr Hayward, who has been a target of criticism because of a number of ill-advised comments he has made, will also be the key witness at a senate hearing on Thursday where he is likely to be closely questioned about BP's clean-up efforts and its commitment to those economically harmed by the spill.

BP has said it plans to boost its ability to directly capture oil gushing from the well by early this week. A semi-submersible drilling rig would capture and burn up to 420,000 gallons of oil daily. Once on board, the oil and gas collected from the well will be sent down a boom and burned at sea.

A drill ship already at the scene can process a maximum of 756,000 gallons (2,900,000 litres) of oil daily which is sucked up through a containment cap sitting on the well head.

It has also suggested that crude oil being collected from the well could raise money for wildlife restoration and protection.