BP's Deepwater Horizon Spill Caused By Gross Negligence, Judge Says, Opening Company Up To Billions Of Dollars Of Claims
International Business Times
Published Sep 04, 2014 11:21AM ET
BP's Deepwater Horizon Spill Caused By Gross Negligence, Judge Says, Opening Company Up To Billions Of Dollars Of Claims
By Greg Morcroft - A U.S. federal judge on Thursday ruled that British energy company BP Plc NYSE:BP (LON:BL) acted with gross negligence that resulted in 2010's Gulf of Mexico accident that killed 11 people and poured millions of gallons of crude into the water over three months. The ruling may force the energy company to pay billions of dollars of claims against it, according to Bloomberg News.
The judge, Carl Barbier, conducted the trial without a jury. The case also included Transocean Ltd. NYSE:RIG and Halliburton Co. NYSE:HAL and they too were found negligent.
“BP’s conduct was reckless. Transocean’s conduct was negligent. Halliburton’s conduct was negligent,” the judge wrote in a decision released by his New Orleans chambers.
According to Bloomberg,
BP, which may face fines of as much as $18 billion, has set aside $3.5 billion to cover those penalties. The company had taken a $43 billion charge to cover all the costs related to the spill, according to a July 29 earnings statement. The ultimate cost is “subject to significant uncertainty,” BP said.
The decision nevertheless may expose BP to unspecified punitive damages for claimants who weren’t part of the $9.2 billion settlement the company reached with most non-government plaintiffs in 2012. The judge left that unclear in his ruling.
Barbier determined that BP was 67 percent responsible for the disaster, while Transocean was responsible for 30 percent with the remaining 3 percent apportioned to Halliburton.
In July a study released about the accident at the Deepwater Horizon well said the impact of the 2010 spill is far more widespread than previously thought. Researchers say the spill’s “footprint” -- the range of the marine ecosystem affected by the Deepwater Horizon disaster -- extends twice as far from the site of the well leak than data first revealed.
BP’s Deepwater Horizon -- a deepwater oil drilling rig 40 miles off the coast of Louisiana -- exploded April 20, 2010, killing 11 crewmen and sparking a fire that could be seen from the mainland. The fire burned for 36 hours before the rig sank to the ocean floor. The resulting oil spill continued until July 15, releasing nearly 5 million barrels, or 210 million gallons, of oil and gas into the environment.
Get The News You Want
BP shares fell almost 5 percent on Thursday.
Written By: International Business Times
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.