BP has agreed a settlement with the US Department of Justice in the wake of the Deepwater Horizon disaster.
Recovery site after the Deepwater Horizon disaster Image: US Coastguard |
The oil giant is set to plead guilty to criminal charges and pay out $4.5bn in fines over a five year period. The fines include a $1.256bn criminal fine, the largest in US history.
In a statement from BP, Chairman Carl-Henric Svanberg stated: "We believe this resolution is in the best interest of BP and its shareholders. It removes two significant legal risks and allows us to vigorously defend the company against the remaining civil claims.”
Currently, lawyers pursuing those claims on behalf of the Gulf areas affected by the spill are pressing for gross negligence findings which would significantly increase BP's compensation bill.
BP has pleaded guilty to 11 felony charges of Misconduct or Neglect of Ships Officers relating to the loss of 11 lives on the rig which exploded in the Gulf of Mexico in April 2010.
Three additional charges are being accepted, including the obstruction of Congress. The majority of the issues relate to the cementing of the Macondo well, the blowout preventer and the intepretation of the negative pressure tests prior to the explosion.
As well as the corporate action, the two highest-ranking BP supervisors that were on board the rig at the time of the explosion have been charged with 23 criminal counts including manslaughter.
The company has stated that it can meet the fines from existing funds, but will be extending its exisiting $38.1bn charge against income by around $3.85bn. More than half the criminal fines will be paid to the National Fish and Wildlife Foundation with further money going to the National Academy of Sciences.