BP must remain stable, Cameron tells BP chief

Prime Minister David Cameron spoke with BP's chairman, Carl-Henric Svanberg, about the Gulf of Mexico oil spill today, telling him it was in everyone's interest for the company to remain financially strong and stable.

The phone conversation, which took place as Mr Cameron returned from Afghanistan, comes ahead of the Prime Minister's scheduled call to US President Barack Obama tomorrow.

Mr Cameron is being urged to mount a defence of BP by senior figures including London Mayor Boris Johnson, who have raised concern about the "anti-British" tone of Mr Obama's attacks on the company.

BP's shares finished up 7.2% on the London Stock Exchange today, recovering losses suffered yesterday as the company came under pressure from the US administration to halt dividend payments and cover the full cost of the clean-up from the Deepwater Horizon spill.

Mr Svanberg has been summoned to meet Mr Obama on Wednesday, and the BP board will meet on Monday to decide whether to suspend or reduce a planned £10 billion dividend.

The Swedish chairman visited Downing Street today, where he met Chancellor George Osborne and officials as well as speaking to Mr Cameron by phone.

Following the discussions, Number 10 said: "The Prime Minister had a constructive call with BP chairman Carl-Henric Svanberg this afternoon.

"The Prime Minister explained that he was frustrated and concerned about the environmental damage caused by the leak but made clear his view that BP is an economically important company in the UK, US and other countries.

"He said that it is in everyone's interests that BP continues to be a financially strong and stable company.

"Mr Svanberg made clear that BP will continue to do all that it can to stop the oil spill, clean up the damage and meet all legitimate claims for compensation.

"The Prime Minister said that he would raise the issue - and discuss these points - in his call with President Obama tomorrow.

"Earlier, Chancellor George Osborne and senior officials met with Mr Svanberg in Downing Street to discuss the crisis."

Emerging from Downing Street, Mr Svanberg told ITN: "I think we have done everything we can to try to fill the well and we have said we would do everything expected from us in cleaning up the beach, taking care of all the claims and learn from this incident and make deep-sea drilling an even safer place."

Asked whether BP would pay dividends, what he thought about President Obama's remarks and whether Mr Cameron needed to back the company, he repeatedly replied: "No comment".

Mr Johnson yesterday demanded an end to the "beating up" of the oil firm, urging the American administration to avoid "name calling" and "buck passing".

BP was paying "a very, very heavy price" for what had been an accident, said the London mayor, pointing out that UK pension funds had a "huge exposure" to the oil giant. The firm is estimated to account for £1 in every £7 of dividends paid to British shareholders.

In an open letter to the president, the chairman of insurance giant Royal Sun Alliance, John Napier, warned Mr Obama's criticism was "unstatesmanlike" and lacked "balance".

But ministers have so far held back from any criticism of the US administration's approach.

Downing Street stressed that tomorrow's call to Mr Obama was a "routine" contact and not an emergency response to the oil spill.

There has been only one direct ministerial-level contact with the US administration about the crisis since it emerged, when Energy Secretary Chris Huhne discussed the situation with his counterpart Steven Chu "in the last week", said a spokeswoman.

"We have got a very good relationship with the US administration," she added.

"The Prime Minister has made it clear that he completely understands the frustration that this environmental tragedy has provoked."

Meanwhile, Deputy Prime Minister Nick Clegg warned against allowing the row to descend into a "tit for tat political diplomatic spat".

"I'm not going to start intervening in a debate which clearly risks descending into megaphone diplomacy," Mr Clegg is reported to have told an audience at the Nueva Economic Forum in Madrid.

"I think everyone is united on both sides of Atlantic - obviously, quite rightly, and understandably within US administration and I'm sure within BP itself - to deal with this problem. It is an ecological catastrophe. It does need to be dealt with."

He went on: "I don't, frankly, think we will reach a solution to stopping release of oil into the ocean any quicker by allowing this to spiral into a tit for tat political diplomatic spat.

"So I and the whole of the British Government want to play our role, as much as we can, our constructive role, to find a solution to what is a huge environmental disaster."

The National Association of Pension Funds played down the potential impact on UK pensions if BP opts to cut or suspend dividends.

Chief executive Joanne Segars told BBC Radio 4's Today programme BP's "long-term" future was far more important.

"BP's current difficulties shouldn't have an immediate or serious impact on those saving into a pension scheme or on those who have retired," she said.

The political row came as scientists said the amount of oil gushing out of the well was far higher than previously estimated.

The US Geological Survey has calculated that as many as 40,000 barrels a day could have been escaping before containment efforts were put in place.

Former trade minister Lord Jones of Birmingham said British people would like to see Mr Cameron "be a bit more forceful".

He told BBC Radio 4's World At One: "America has previous on being a little bit protectionist, making sure that a company takes the rap ...

"I don't want BP falling foul of domestic pork barrel politics with mid-term elections coming up."