Oil major pays up for rig explosion disaster

BRITISH oil and gas major BP has agreed to pay $4.5 billion in fines and pleaded guilty to 14 criminal changes for its role in the 2010 Deepwater Horizon incident that killed 11 workers and resulted in the biggest offshore oil spill in US history.
The penalty is the largest ever handed down by the US Justice Department and will be paid in instalments across a six-year period, subject to US federal
court approval.
BP has also agreed to pay $525 million in fines from the US Securities and Exchange Commission across a period of three years.
The oil and gas giant still faces a number of civil claims in relation to the disaster and consequent oil spill, which resulted in billions of dollars in lost income for businesses in the Gulf of Mexico.
According to a statement by the company, BP has agreed to plead guilty to 11 felony counts of misconduct or negligence of ships officers, one misdemeanour count under the Clean Water Act, one misdemeanour count under the Migratory Bird Treaty Act and one felony count of obstruction of Congress.
Criminal charges have also been laid against three BP employees, including two high-ranking supervisors who were aboard the Deepwater Horizon rig at the time of the incident and failed to identify serious issues with the Maconda well.
Robert Kaluza and Don Vidrine were charged with 11 counts of seaman’s manslaughter, 11 counts of involuntary manslaughter and one violation of the Clean Water Act.
Former BP executive David Rainey, who led the spill response team, was also charged with obstruction of Congress for allegedly making false statements about the amount of oil coming from the well.
BP Group chief executive Bob Dudley said the company was extremely remorseful and would do everything possible to comply with the resolution.
“All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident as well as the impact of the spill on the Gulf coast region,” he said in a statement.
“We apologize for our role in the accident, and as today’s resolution with the US Government further reflects, we have accepted responsibility for our actions.”
Under the terms of its plea agreement, BP is required to employ further safety measures and controls at its operations, including risk management processes, third-party audits, training, and the implementation of equipment such as blowout preventers and cementing.
Two monitors will also be appointed – each for four years – to review, evaluate and provide recommendations for the improvements of the company’s deepwater drilling safety and risk management procedures.

Leave a Reply

Your email address will not be published.

* Copy This Password *

* Type Or Paste Password Here *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>