You are here: Home - Investing - Experienced Investor - News -

BP tumbles after company found ‘grossly negligent’ over US disaster

0
Written by:
05/09/2014
Shares in BP slumped late on Thursday after the group was found by a US judge to be "grossly negligent" and "reckless" in the Gulf of Mexico four years ago.

Shares in BP fell a further 0.8 per cent this morning, having closed down 5.6 per cent yesterday, after U.S. District Judge Carl Barbier delivered a ruling against the oil giant which opens it up to further fines.

No fine was mentioned because the ruling did not provide specifics on how many barrels of oil BP actually spilt during the disaster, but estimates in the market are that the ruling could cost the company an extra $18bn (£11bn) in fines, on top of the $42bn it has already paid out.

Barbier ruled BP was mostly at fault and that two other companies in the case, Transocean and Halliburton, were less responsible for the disaster.

A surge of methane gas known to rig hands as a “kick” sparked an explosion aboard the Deepwater Horizon rig as it was drilling the mile-deep Macondo 252 well off Louisiana back in 2010, leading to a number of deaths and the subsequent oil spill.

BP said it “strongly disagrees” with the decision and will immediately appeal to the United States Court of Appeals for the Fifth Circuit.

“BP believes that the finding that it was grossly negligent with respect to the accident and that its activities at the Macondo well amounted to willful misconduct is not supported by the evidence at trial,” it said.

“The law is clear that proving gross negligence is a very high bar that was not met in this case. BP believes that an impartial view of the record does not support the erroneous conclusion reached by the District Court.”

It added during the penalty proceedings, BP will seek to show that its conduct merits a penalty that was well below the maximum allowed.

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week