<p><br /> BP is "a very strong company" that will survive the crisis over the Gulf of Mexico oil spill, according to Chancellor George Osborne.<br /> </p><p><br /> He said it was important for both the British and American economies that the company should succeed and flourish.<br /> </p><p><br /> The Chancellor's comments came as BP boss Tony Hayward prepares to face a hostile grilling from US senators.<br /> </p><p><br /> He has already agreed to scrap dividends this year and set aside $20 billion (£13.5 billion) as a downpayment for a compensation fund.<br /> </p><p><br /> Kenneth Feinberg, the lawyer who oversaw compensation payments to the families of victims of the September 11 attacks, will supervise payments from the compensation fund.<br /> </p><p><br /> BP will make initial payments of $5 billion (£3.4 billion) in total during the rest of 2010, followed by payments of $1.25 billion (£851 million) until all 20 billion dollars has been paid in.<br /> </p><p><br /> As well as the dividend cut, BP is paying for the fund with a cut in capital spending. The oil giant will get back any of the money left when all legitimate claims have been resolved and paid.<br /> </p><p><br /> Following Wednesday's meeting Mr Obama said that he had "directed" BP to increase its efforts to stop the spill.<br /> </p><p><br /> This should result in 90 per cent of the leaking oil being captured in the coming days and weeks, he said.<br /> </p><p><br /> "That is still not good enough. We will continue to press BP," the president added.<br /> </p><p><br /> BP has launched a second containment system to control the spill as well as working on two relief wells being drilled below the sea bed. These will not be completed until August.<br /> </p>
