Daily Management Review

BP to Pay a Record Fine for Oil Spill


British oil company British Petrolium (BP) settled with the US authorities the issue of compensation for the accident on the platform Deepwater Horizon, which led to the oil spill in the Gulf of Mexico in 2010, said in a statement on its website. The total amount of payments is totaling 18.7 billion dollars.

With this amount, the company will cover the claims of Louisiana, Mississippi, Alabama, Florida and Texas states, which went to court, demanding compensation. For these purposes 4.9 billion dollars will be allocated.

BP will pay $ 5.5 billion for water purification program (payment will being made for 15 years) and 7.1 billion dollars for the restoration of natural resources. The company will pay another 1 billion to local governments, the location of which is not specified.

The entire amount of compensation will be paid within 18 years.

BP CEO Robert Dudley said that the decision "will bring clarity and certainty in the situation" for all parties and will allow the company to focus on the security of fuel supplies to the world market.

BP’s compensation is the largest ever paid among private companies in the United States.

Late last year, the US government filed a motion in federal court in New Orleans asking BP to be fined for the accident in the Gulf of Mexico at 16-18 billion dollars. In September 2014, Judge Carl Barbier admitted BP guilty of negligence, and decided that the company is 67 percent responsible for the accident in the Gulf of Mexico. Another 30 percent, according to the verdict, go to the Swiss company Transocean, which owned drilling rig Deepwater Horizon, and 3 per cent - in the US Halliburton, which was supposed to cement oil wells.

April 20, 2010, 80 km away from the coast of the US state of Louisiana, a fire and explosion occurred on an oil platform Deepwater Horizon. The fire lasted for more than 35 hours, the ships, which arrived at the scene of an accident, tried unsuccessfully to put out the fire. April 22, the platform sank in the Gulf of Mexico.

As a result of the accident, 11 people went missing, the search was carried out up to 24 April 2010 and did not give any results. 115 people were evacuated from the platform, including 17 with injuries. Subsequently, the global news agency reported that two more people died in the aftermath.

From April 20 to September 19, liquidation of consequences of the accident continued. Meanwhile, as some experts estimated, every day about 5,000 barrels of oil leaked into the water. According to others, up to 100,000 barrels per day poured into the water, - United States Secretary of the Interior.

By the end of April, the oil slick has reached the mouth of the Mississippi River, and in July 2010, the oil was discovered on the beaches of the US state of Texas. In addition, underwater oil plume stretched 35 km in length at a depth of over 1000 meters.

For 152 days, about 5 million barrels of oil spilled in the waters of the Gulf of Mexico through the damaged tube wells. The area of the oil spill was 75 thousand square kilometers.

source: independent.co.uk