BP Tries Again To Siphon Crude From Gulf Leak After Setback

BP PLC (BP) said Saturday its latest effort to contain a massive oil spill in the Gulf of Mexico by siphoning crude from the deepwater well faced an initial setback, but could be operational overnight.

The U.K. oil giant is trying to reduce the amount of oil spewing into the Gulf by threading a tube into broken piping coming from the well. The tube would carry oil to a tanker at the surface, stemming at least 5,000 barrels of oil leaking into the Gulf a day.

During a press briefing, BP Chief Operating Officer Doug Suttles said an initial attempt to put the tube in place a mile beneath the surface was unsuccessful, with crews pulling the equipment back to the surface. The company is making a second attempt Saturday. BP had planned to begin siphoning oil by now, but warned the process is challenging at such depths.

"It reflects the reality they are working in," Suttles said.

Engineers for more than three weeks have been trying to contain the leak caused by the April 20 explosion and sinking, two days later, of Transocean Ltd.'s (RIG) Deepwater Horizon drilling rig, which was finishing a well for BP. Eleven members of the crew were killed by the blast, and the spill threatens shores of several Gulf Coast states.

BP turned to the siphon plan after a containment dome lowered over the well failed a week ago. The company has a smaller containment dome known as the "top hat" on the ocean floor as a backup to its current effort.

Interior Secretary Ken Salazar said a group of top scientists led by Energy Secretary Steven Chu plan to meet Sunday to continue working to stop the deepwater leak.

"We feel the pain. We are frustrated," Salazar said during the press briefing.

Engineers are working on a system to stop the flow of oil, which is expected to be ready by the end of next week. These options include a "junk shot," whereby a variety of materials including tire pieces, knots of rope and other items would be sent down to clog the leak. The company is drilling a relief well that is seen as the ultimate solution to stop the spill, but that is scheduled to take months.

Also on Saturday, Homeland Security Secretary Janet Napolitano and Salazar released a letter to BP Chief Executive Tony Hayward asking him for a clear understanding of the company's commitment to pay for damages from the spill. The U.S. secretaries wrote that their understanding is the company will not rely on a federal liability cap or seek reimbursement from the U.S. government or an oil spill liability trust fund.

Rough waters and stormy weather hampered offshore cleanup efforts on Saturday. Crews were unable to sweep offshore waters or execute controlled burns. They did use chemical dispersants in deep waters to break up the oil--a relatively untested process that received federal approval Friday.

As for the effects on the coast, the U.S. Coast Guard has reported oil sheen at Chandeleur Island off Louisiana and "tar balls" on beaches in Louisiana, Mississippi and Alabama. The spill is hitting the offshore fishing industry and keeping tourists away from the Gulf Coast.

-By Mark Peters, Dow Jones Newswires; 212-416-2457; mark.peters@dowjones.com

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