Deepwater Horizon Oil Spill Record Fine for BP for Deepwater Horizon Oil Spill

Editor: Dominik Stephan

BP and US authorities have reached an agreement: The British oil giant will pay largest criminal fine in US history – US 4.5 billion – for the damages caused by the 2010 explosion and following oil spill at the Deepwater Horizon oil rig in the Gulf of Mexico...

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Fire boat crews battle the blazing remnants of the off shore oil rig Deepwater Horizon April 21, 2010
Fire boat crews battle the blazing remnants of the off shore oil rig Deepwater Horizon April 21, 2010
(Picture: US Coast Guard)

Washington DC/USA – BP agreed to plead guilty to a total of 11 felony counts of misconduct and neglect, relating to the incident that took the live of 11 workers and caused one of the most severe environmental catastrophes of recent history. The company agreed on the payment of US $ 4 billion to resolve all claims with the US Department of Justice during the next five years plus US $ 525 million paid in installments over a period of three years to settle with the Securities and Exchange Commission.

Civil Lawsuits for Deepwater Horizon Incident Not Included in Settlement

The settlement does not include civil lawsuits and resulting fines as well as individual lawsuits by US states. “We believe this resolution is in the best interest of BP and its shareholders,” said Carl-Henric Svanberg, BP’s Chairman. “It removes two significant legal risks and allows us to vigorously defend the company against the remaining civil claims.” The company expects the existing US $ 38.1 billion charge against income to increase by approximately US $ 3.85 billion, speakers explained.

Biggest Oil Spill in History – Worse Than Exxon Valdez

The exploration oil rig Deepwater Horizon, operator by contractor Transocean, was destroyed in a explosion following a blowout at a sub–sea wellhead in April 2010. The following oil spill, the worst of its kind in history, polluted shores from Florida to Mexico. The spill was even worse than the 1989 Exxon Valdez incident in the Prince William Sound, Alaska. As the depth of the wellhead made it difficult to plug the well, the leak could not be closed for an 87 days period.