US Court Says BP 'Grossly Negligent' In 2010 Spill, Billions In Fines Loom
HOUSTON, Sept 4 (Reuters) - BP Plc was "grossly negligent" for its role in the 2010 spill in the Gulf of Mexico, a U.S. district judge said on Thursday in a ruling that could add billions of dollars in fines to the more than $42 billion in charges taken so far for the worst offshore disaster in U.S. history.
Shares of BP traded in the United States fell 5 percent, or $2.40, to $45.31, eroding about $8.8 billion of its market value.
"The Court concludes that the discharge of oil 'was the result of gross negligence or willful misconduct' by BP, said the ruling from U.S. District Judge Carl Barbier in New Orleans.
BP said it would appeal the ruling.
The company was already forced to shrink by selling assets to pay for the cleanup of the disaster aboard the Deepwater Horizon drilling rig that killed 11 workers and spewed millions of barrels of oil for 87 days after the blast.
"Obviously the market's not taken it well and it was a little bit unexpected but you would expect BP to appeal the level of the fines, the decision made," said TJM Partners head of trading Manoj Ladwa said in London. "It is a short-term concern; longer term BP are cash generative and I'm sure they'll have the funds to pay for this."
Barbier has yet to assign damages from the spill under the federal Clean Water Act. Previous calculations by Reuters have shown fines could run to $17.6 billion in the costliest scenario.
A gross negligence verdict carries a potential fine of $4,300 per barrel fine, with BP having said some 3.26 million barrels leaked from the well and the U.S government having said 4.9 million barrels spilled.
Barbier apportioned 67 percent of the fault to BP, 30 percent to Transocean Ltd, which owned the drillship, and 3 percent to Halliburton, which did cement work on the Macondo well that blew out. Both of those companies have sought to limit their liability from the spill.
(Reporting by Sudip Kar-Gupta and Karolin Schaps; Writing by Terry Wade; Editing by Grant McCool)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension