New setback for BP in Deepwater Horizon case
BP’s hopes of reaching a settlement over the Deepwater Horizon catastrophe were dealt a blow today after it emerged that the US Government intends to prove gross negligence or wilful misconduct at trial.
The US Department of Justice (DoJ) said the oil giant displayed a “culture of corporate recklessness”, according to a memo filed with a New Orleans court, in the clearest sign yet that it will push for the maximum possible penalties following the spill in 2010.
BP said it will defend itself against the action, but the move is significant because it deals a blow to hopes of an out-of-court settlement and has the potential to escalate the cost of the disaster.
If the DoJ can establish gross negligence, it could mean up to $21bn (€16.7bn) in costs although there could also be further compensation to come.
BP’s shares fell 4% today, wiping more than £3bn (€3.78bn) from its market value.
Government lawyers said in the memo seen by the Financial Times: “The behaviour, words and actions of these BP executives would not be tolerated in a middling size company manufacturing dry goods for sale in a suburban mall.
“Yet they were condoned in a corporation engaged in an activity that no less a witness than former BP chief executive Tony Hayward himself described as comparable to exploring outer space.”
