INVESTORS are expected to ramp up the pressure on BP to settle with the US government after a court ruling opened it up to billions of dollars in new damages on top of the $43bn it has already paid or set aside for the Gulf of Mexico disaster.
Last week the federal judge Carl Barbier ruled that BP was guilty of “gross negligence” and wilful misconduct over the 2010 explosion on the Deepwater Horizon oil rig, which killed 11 workers and spilt millions of barrels of crude. The company promised to appeal against the “erroneous” decision — a process likely to drag on for years.
BP’s shares are worth a third less than they were before the disaster. The slump has largely been due to uncertainty over how much it will ultimately have to pay to settle its legal issues in America.
The company came close to settling with the government and five southern states affected by the spill, but talks broke down just days before the trial started last year.
Barbier’s verdict of gross negligence was the worst possible result for BP.
Advertisement
The company had set aside $3.5bn (£2.1bn) for penalties under the Clean Water Act, which penalises company for each barrel of oil they spill. The assumption was that the government would not be able to prove gross negligence, a very high legal bar. If Barbier’s decision is upheld, BP could be hit with fines of up to $18bn.
BP shares closed last week at 466.8p, giving it a stock market value of £85.6bn.