BP ‘grossly negligent’ in 2010 U.S. spill, fines could be $18 billion
A U.S. judge has decided that BP Plc was “grossly negligent” and “reckless” in the Gulf of Mexico oil spill four years ago, a ruling that could add nearly $18 billion in fines to more than $42 billion in charges the company took for the worst offshore environmental disaster in U.S. history.
BP said it would appeal Thursday’s ruling by U.S. District Judge Carl Barbier in New Orleans, Louisiana, who held a trial without a jury last year to determine who was responsible for the April 20, 2010 rig explosion.
Barbier ruled that BP was mostly at fault and that two other companies in the case, Transocean Ltd and Halliburton, were not as much to blame.
Previous calculations by Reuters have shown fines could run to $17.6 billion in the costliest scenario under a ‘gross negligence’ finding. The amount is far more than the $4.5 billion maximum fine that could have been levied under a simple ‘negligence’ ruling.
Shares of BP in the United States closed down 5.9% at $44.89. BP shares in London also closed down nearly 6%, the worst one day slide in more than four years.
BP has been forced to shrink by selling assets to pay for the cleanup. Those sales erased about a fifth of its earning power and it may be pressured by investors to delay making new investments until the lawsuit is resolved.
Source: Reuters
