BP mulls dividend cut as spill costs rise

The company said in a statement that this figure included $60m on building barriers off the Louisiana coast.The costs update came as BP directors prepare to discuss whether to suspend dividends to shareholders. The firm is under intense pressure from the US government, which wants BP to use the money to pay for the Gulf of Mexico clean-up. BP is also facing a raft of lawsuits, some of which have already been filed. The latest announcement on costs does not include any estimate of potential legal bills. Its shares fell by more than 5% in London yesterday.

The company's value has almost halved since the Deepwater Horizon rig exploded on 20 April and sank off the coast of Louisiana, killing 11 workers.