PM seeks to calm troubled waters

As anger grows in the US over the oil giant's failure to halt the flow of crude from the pipe ruptured in the explosion of the Deepwater Horizon rig in April, there is mounting concern in the UK that criticism of the company is taking on a "anti-British" tone.

In a phone conversation with BP chairman Carl-Henric Svanberg yesterday, Mr Cameron told him it was in everyone's interest for the company to remain financially strong and stable.

The Prime Minister is being urged to mount a defence of BP by senior figures including London Mayor Boris Johnson, who have raised concern about the "anti-British" tone of Mr Obama's attacks on the firm.

And in an open letter to the President, the chairman of insurance giant Royal Sun Alliance, John Napier, warned Mr Obama's criticism was "unstatesmanlike" and lacked "balance".

Yesterday, other senior business figures spoke out in support of the protest but ministers have so far held back from any criticism

of the US administration's approach.

BP's shares finished up 7.2 per cent on the London Stock Exchange yesterday, recovering losses suffered Thursday as the company came under pressure from the Washington administration to halt dividend payments and cover the full cost of the clean-up.

Mr Svanberg has been summoned to meet Mr Obama on Wednesday, and the BP board will meet on Monday to decide whether to suspend or reduce a planned 10bn dividend.

The Swedish chairman visited Downing Street, where he met Chancellor George Osborne and officials as well as speaking to Mr Cameron by phone.

After the discussions, Number 10 said: "The Prime Minister explained that he was frustrated and concerned about the environmental damage caused by the leak but made clear his view that BP is an economically important company in the UK, US and other countries.

He said that it is in everyone's interests that BP continues to be a financially strong and stable company.

"Mr Svanberg made clear that BP will continue to do all that it can to stop the oil spill, clean up the damage and meet all legitimate claims for compensation."

Scientists yesterday said more than 100 million gallons may have already been released, affecting people and wildlife along the US coast from Louisiana to Florida.

All the new estimates are worse than earlier ones – and far more costly for BP, which has seen its stock sink since the April 20 explosion that killed 11 workers.

The spill was flowing at a daily rate that could possibly have been as high as 2.1 million gallons, twice the highest number the federal government had been saying, said US Geological Survey director Marcia McNutt, who is co-ordinating estimates.

Although angry at BP over the disaster, state officials warn that the Obama administration's six-month halt to new permits for deep-sea oil drilling has sent Louisiana's most lucrative industry into a death spiral.