Costs continue to soar for BP

BP is to pay for six sand barriers to prevent oil from reaching Louisiana's coastland at a cost of 293 million euros. The latest move to contain the massive oil spill in the Gulf of Mexico comes as international ratings agency, Fitch, downgrades the oil giant from AA+ to AA. 

BP efforts continue to contain oil spill reuters

On Tuesday, BP revealed that the huge oil spill had already cost the company around 811 million euros. The construction of the sand barriers will push this figure higher to around 1,106 billion euros.

BP Chief Executive, Tony Hayward says that the federal government and the State of Louisiana had agreed that the barrier island construction was an effective response to the worst ever spill in US history.

More than 200 kilometres of Lousiana's coast are believed to be contaminated raising long-term fears for the region's already endangered wildlife.

Fitch says BP's downgrade reflects the opinion that risks to both the company's business and financial profile continue to increase following the Deepwater Horizon accident. It warned that the official investigation into the incident was another negative factor and BP could still face more downgrades.

After a string of failed attempts to prevent the oil gushing from the leak, BP is now battling to contain the spill with robotic submarines working in cold waters a mile down on the sea bed.