BP plc (ADR) (BP) Might Face $18 Billion Penalties in Deepwater Horizon Explosion

BP plc (ADR) (BP)

Four years after the Deepwater Horizon rig explosion, BP plc (ADR) (NYSE:BP) was found guilty according to a federal judge ruling. The company might face civil penalties of $18 billion because of the resultant pollution in the Gulf of Mexico as stated under the U.S. Clean Water Act.

According to Carl Barbier, U.S. District Judge in New Orleans, found out that BP plc (ADR) (NYSE:BP) was quite negligent in the Deepwater Horizon oil spill and both other companies including Transocean LTD (NYSE:RIG) and Halliburton Company (NYSE:HAL) were equally negligent in the matter. He further wrote,

“BP’s conduct was reckless. Transocean’s conduct was negligent. Halliburton’s conduct was negligent.”

Barbier found BP plc (ADR) (NYSE:BP) to be 67% responsible for the overall tragedy whereas Transocean LTD (NYSE:RIG) was held responsible for 30% of the damages. Halliburton Company (NYSE:HAL) was charged with a 3% responsibility in the accident.

BP plc (ADR) (BP)

Earlier, Halliburton Company (NYSE:HAL) agreed to pay $1.1 billion in settlements to the business and property owners in the Gulf region because of its role in the 2010 Deepwater Horizon rig explosion, which killed 11 workers, injured 16, and contributed to a month-long oil spill. The fire set off by the accident continued for 36 hours before sinking and the destruction released 210 million gallons of gas and oil in the Gulf. The company urged Barbier to approve the agreement, as the amount is sufficient for covering a substantial amount of claims.

BP plc (ADR) (NYSE:BP) agreed to pay $4.5 billion in penalties in 2012 and accepted responsibility for the accident. Further, the company set apart as much as $43 billion to cover up for all the claims related to the spill.

This article has been written by Prakash Pandey.

Related News:

BP plc (ADR) (BP) Wants Gulf Spill Claims Administrator Replaced Due to Conflict of Interest

 

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