DEEPWATER HORIZON Update May 20, 2010

RESPONSE IN NUMBERS:
Claims filed to BP = 15,600
Claims paid by BP= 2,700
Total response vessels: more than 950
Containment boom deployed: more than 1.36 million feet
Containment boom available: more than 350,000 feet
Sorbent boom deployed: more than 480,000 feet
Sorbent boom available: more than 800,000 feet
Total boom deployed: more than 1.8 million feet (regular plus sorbent boom)
Total boom available: more than 1.15 million feet (regular plus sorbent boom)
Oily water recovered: more than 7.65 million gallons
Surface dispersant used: approximately 590,000 gallons
Subsea dispersant used: approximately 53,000
Total dispersant used: approximately 640,000
Dispersant available: more than 300,000 gallons
Overall personnel responding: more than 20,000

Subsea Source Control and Containment
Subsea efforts continue to focus on progressing options to stop the flow of oil from the well through interventions via the blow out preventer (BOP), and to collect the flow of oil from the leak points. These efforts are being carried out in conjunction with governmental authorities and other industry experts.

The riser insertion tube tool (RITT) containment system that was put into place in the end of the leaking riser is operational. It is estimated to be collecting and carrying about 2,000 barrels a day (b/d) of oil to flow up to the drillship Discoverer Enterprise on the surface 5,000 feet above. Produced oil is being stored on the drillship while produced gas is being flared.

It is expected that it will take some time to increase the flow through the system and maximise the proportion of oil and gas flowing through the broken riser that will be captured and transported to the drillship.

This remains a new technology and both its continued operation and its effectiveness in capturing the oil and gas remain uncertain. Other containment options continue to be progressed.

BP also continues to develop options to shut off the flow of oil from the well through interventions via the failed BOP.

Plans continue to develop a so called "top kill" operation where heavy drilling fluids are injected into the well to stem the flow of oil and gas, followed by cement to seal the well. Most of the equipment is on site and preparations continue for this operation, with a view to deployment in the next week or so. Options have also been developed to potentially combine this with the injection under pressure of a variety of materials into the BOP to seal off upward flow.

Work on the first relief well, which began on May 2, continues. The DDII drilling rig began drilling the second relief well on May 16. Each of these wells is estimated to take some three months to complete from the commencement of drilling.

Surface Spill Response and Containment
Work continues to collect and disperse oil that has reached the surface of the sea. Over 750 vessels are involved in the response effort, including skimmers, tugs, barges and recovery vessels.

Intensive operations to skim oil from the surface of the water have now recovered, in total, some 158,000 barrels (6.6 million gallons) of oily liquid. The total length of boom deployed as part of efforts to prevent oil reaching the coast is now more than 1.7 million feet, including over 400,000 feet of sorbent boom.

In total over 19,000 personnel from BP, other companies and government agencies are currently involved in the response to this incident. So far 15,600 claims have been filed and 2,700 have already been paid.

On 17 May, BP announced further grants, totalling $70 million, to Florida, Alabama, Louisiana and Mississippi to help mitigate the economic impact of the oil spill. Including these grants, the cost of the response to date amounts to about $625 million, including the cost of the spill response, containment, relief well drilling, previous grants to the Gulf states, settlements and federal costs.

The President Urges Congress to Act on Legislation to Enhance Response
President Obama again urged Congress to act quickly on a legislative package that will enable the Deepwater BP Oil Spill response to continue expeditiously, speed assistance to people affected by this spill, and strengthen and update the oil spill liability system to better address catastrophic events.

The President issued the following statement: “I am disappointed that an effort to ensure that oil companies pay fully for disasters they cause has stalled in the United States Senate on a partisan basis. This maneuver threatens to leave taxpayers, rather than the oil companies, on the hook for future disasters like the BP oil spill. I urge the Senate Republicans to stop playing special interest politics and join in a bipartisan effort to protect taxpayers and demand accountability from the oil companies.”

Small Amounts of Oil Reach Proximity of Loop Current
Satellite imagery indicates that the main bulk of the oil is dozens of miles away from the Loop Current, but that a tendril of light oil has been transported within close proximity. NOAA is conducting ongoing aerial observations to determine with certainty whether or not the oil has actually entered the Loop Current, and continues engage experts within and outside government to develop long-term oil movement forecasts.

Both the location of the Loop Current and the oil slick are dynamic—moving around from day to day. The proximity of the tendril of light oil to the Loop Current indicates that oil is increasingly likely to become entrained. In the time it would take for oil to travel to the vicinity of the Loop Current, any oil would be highly weathered and the natural processes of evaporation and dispersion would reduce the oil volume significantly. The oil would also be significantly diminished by ongoing chemical dispersant application.

Fishing Restrictions Extended, Balancing Economic and Public Health Concerns
Out of an abundance of caution, NOAA has extended the boundaries of the closed fishing area in the Gulf of Mexico into the northern portion of the Loop Current as a precautionary measure to ensure that seafood from the Gulf will remain safe for consumers. Though the latest analysis shows that the bulk of the oil remains dozens of miles from the Loop Current, the new boundaries address the possibility that a tendril of light oil has entered or will enter it.

The closed area now represents 45,728 square miles, which is slightly less than 19 percent of Gulf of Mexico federal waters. This leaves more than 81 percent of Gulf federal waters—or nearly 195,000 square miles—still available for fishing. Details can be found at http://sero.nmfs.noaa.gov/.

The newly closed area is more than 150 miles from the nearest port and primarily in deep water used by pelagic longline fisheries that target highly migratory species, such as tuna and swordfish. Coastal fisheries, such as grouper, snapper and shrimp, will not be affected by the expansion of the closed area.

NASA Continues to Provide Satellite Imagery to Monitor the Oil Slick
NASA scientists and research partners are working closely to provide satellite data to those who need it in the wake of the disaster. One such scientist is Sonia Gallegos, of the Naval Research Laboratory (NRL), who recently spent several days on a boat seeing the effects of the oil spill first hand. This project, which proposes to use NASA’s active and passive remote sensing capabilities to monitor oil slicks, was funded by NASA six months ago and got a serious jump start three weeks ago when the Deepwater Horizon BP oil rig caught fire and sunk.

This project is part of a larger effort by NASA’s Applied Sciences Program to address coastal management issues in the Gulf of Mexico. NASA’s Gulf of Mexico Initiative began in response to the impact of hurricanes Katrina, Dennis, Rita and Wilma in 2005 and overall is intended to enhance the ecological and economic health of the Gulf. NASA is working to achieve these goals through use of expertise in remote sensing, oceanography, coastal processes, signal processing and mathematical modeling.

Controlled Burn Conducted
Favorable weather conditions allowed responders to conduct a successful controlled burn operation for the second consecutive day. As part of a coordinated response that combines tactics deployed above water, below water, offshore, and close to coastal areas, controlled burns efficiently remove oil from the open water in an effort to protect shoreline and wildlife.

Aircraft Conduct Aerial Dispersant Missions
Modular Aerial Spray System (MASS) aircraft flew multiple missions—dispensing the same dispersant chemical being used by BP and the federal responders. These systems are capable of covering up to 250 acres per flight.

Coastal Waters Assessment Team Completes Sampling
NOAA’s Mussel Watch replacement team completed sampling throughout coastal Louisiana, Mississippi, Alabama and Florida, and is now focused on collecting oysters, sediments and water at eight remaining sites in Texas. In total, the Mussel Watch pre-oiling sample expedition will have visited 60 sites in the northeastern Gulf region in partnership with NOAA’s National Marine Fisheries Service, the Louisiana Department of Fish & Wildlife, Louisiana State University, and the MOTE Marine Laboratory.

BP Announces Tourism Grants To Four Gulf States
BP is today announcing grants to each of the states of Florida, Alabama, Mississippi and Louisiana to help their Governors promote tourism around the shores of the Gulf of Mexico over the coming months.

This is part of our ongoing commitment to help mitigate the economic impact of the oil spill.

BP is providing $25 million to Florida and $15 million each to Alabama, Mississippi and Louisiana.

"The Gulf Coast is our home too. We are doing everything we can to plug the leak, contain the spill offshore and protect the shoreline. With the deployment of the riser insertion tool yesterday, we made important progress in containing the spill, and that will further strengthen our ability to keep oil off the shore," said Tony Hayward, BP’s Group Chief Executive.

"We understand the Governors' concerns for the impact on the tourism industry, and are making funds available so that they can support the industry’s efforts to provide accurate information about the state of the beaches across the region."

These grants are in addition to the $25 million grants BP announced May 5 to help each of the four states accelerate the implementation of Area Contingency Plans. The grants announced today are for the Governors to distribute as they see fit to promote tourism.

The grants BP has made to the four states do not affect BP's response to the Deepwater Horizon incident or existing claims process, but are supplemental to them.

SBA Continues to Make Low-Interest Loans Available to Affected Small Businesses
SBA Administrator Karen Mills has made available low-interest economic injury assistance loans—and deferring the first payment for 12 months—for small businesses suffering financial losses following the oil spill in coastal regions of Alabama, Florida, Louisiana and Mississippi.

While small businesses are encouraged to file claims with BP, these loans can provide the critical temporary assistance needed to overcome the loss of revenue they are currently experiencing. Additionally, the agency is offering deferral opportunities for small businesses in the affected areas on existing SBA disaster loans, as well as encouraging private lenders who have borrowers in the affected areas with existing SBA-guaranteed loans to consider deferrals.

Loan applications can also be made via SBA’s secure web application at www.sba.gov or over the phone at (800) 659-2955.