U.S. President Barack Obama wants oil company to set aside billions of dollars and to set up independent claims procedure.
Obama is turning up the heat on BP PLC, demanding that London-based company set aside billions of dollars in a reserve account and speed up its compensation plan for Gulf residents.
Mr. Obama, who is under pressure himself for his handling of the Gulf crisis, is travelling to the region Monday and Tuesday before addressing the country from the Oval Office, a prime-time television event aimed at portraying the embattled President as a leader who is taking all actions possible to deal with the crisis.
He will meet Wednesday with BP executives – including BP chairman Carl Henric Svanberg and much-maligned chief executive Tony Hayward – where he will urge them to set aside billions of dollars into an escrow account to cover the economic costs from the blowout, and to establish an independent claims procedure.
At the same time, executives from the top international oil companies – Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell PLC and ConocoPhillips Co. – are due to appear at a congressional committee examining the offshore industry, where they will stress their own safety records in the Gulf of Mexico.
Coast Guard Admiral Thad Allen said Sunday the federal government is concerned that BP is not moving quickly enough to pay the claims of businesses and residents who have suffered financial losses due to the blowout and closure of the fisheries.
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