Monday, 29 September 2014

BP found guilty of gross negligence

September 29, 2014.

BP Plc could have to pay a fine of up to $18bn dollars after being found guity of gross negligence in the wake of the 2010 Gulf of Mexico oil spill, the biggest of its type in US history.

In a case that also involved Transocean Ltd. (RIG) and Halliburton Co. (HAL), US District Judge Carl Barbier ruled that “BP’s conduct was reckless” while “Transocean’s conduct was negligent' and "Halliburton’s conduct was negligent.” The court apportioned 67% of blame for the accident with BP, 30% with Transocean and 3 % with Halliburton.

BP is thought to have set aside $3.5bn to cover the costs of fines for the disaster that killed 11 people and spilled oil for almost three months into waters that reach the shores of five states.

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.



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