BP PLC (BP) shares rose almost 4% Monday morning as fears subsided that a tropical storm would disrupt the cleanup operation, but that good news was offset by a sharp increase in the company's daily rate of spend on Gulf of Mexico operations to $100 million.

At 0936 GMT BP shares were up 3.6%, or 11 pence, at 316 pence, leading London's FTSE 100 index. BP's market value has more than halved since the oil spill began in April.

Tropical storm Alex, which had threatened to disrupt the response to the Deepwater Horizon oil spill, was headed far to the west of the site, according to the National Hurricane Center.

Meanwhile, BP said the total cost of oil spill containment, cleanup and compensation has risen to $2.65 billion, compared with $2.35 billion Friday. BP was spending just $6 million a day when the spill began in April, but that cost has soared as the slick has spread and efforts to cap the leaking well have intensified.

BP reiterated its timetable for the drilling of two relief wells, which may be the only way to permanently halt the flow of oil from the leaking well. The wells are ahead of schedule, said a BP spokeswoman, but the company retains its estimate that they will reach their target in early to mid-August.

 
   -By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com
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