BP faces multi-billion dollar fine over Gulf of Mexico oil spill

BP is facing a multi-billion dollar fine after it was found to be "grossly negligent" over the 2010 Gulf of Mexico oil spill.

A US judge is yet to rule on how much the company will have to pay out. However, BP has said it would appeal the ruling.

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BP made 'profit-driven decisions' during drilling

A US judge has ruled BP made "profit-driven decisions" during the drilling of an oil well in the Gulf of Mexico that led to a deadly explosion.

BP pleaded guilty to manslaughter charges over the death of 11 rig workers.

Ruling that BP had acted recklessly in relation to the 2010 spill, District Judge Barbier said: "These instances of negligence, taken together, evince an extreme deviation from the standard of care and a conscious disregard of known risks."

The oil giant pleaded guilty in January 2013 to manslaughter charges for the deaths of 11 rig workers following the blast.

Greenpeace: Oil industry has shown it can't be trusted

A ruling of gross negligence against BP in relation to the Gulf of Mexico oil spill is an "unambiguous warning" to the US government and the oil industry, Greenpeace says.

Fire boat response crews battle the blazing remnants of the offshore oil rig Deepwater Horizon in April 2010. Credit: Reuters

Whether we’re talking about drilling in deep water or in extremely dangerous or challenging environments like the Arctic, this is yet more proof that that the risks of frontier drilling just aren’t worth it.

Yet again, the oil industry has shown it can’t be trusted and it can’t mitigate the high risks to the local environment, global climate and the economy from drilling in the margins.

– Charlie Kronick, Greenpeace senior Arctic campaigner

The campaign group added that if drilling in the temperate conditions of the Gulf of Mexico could not be done safely, plans submitted for approval by Shell to operate in the Alaskan Arctic "would be disastrous".

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Timeline: Gulf of Mexico oil spill

A Terra satellite captured a wide-view natural-color image of an oil slick off the Louisiana coast, taken on 29 April, 2010. Credit: Reuters

A reminder of the timeline of events in the Gulf of Mexico oil spill:

  • 20 April 2010: Explosion and fire on Deepwater Horizon rig kills 11 workers and injures 17. The rig is owned by Transocean Ltd and licensed to BP.
  • 22 April: Rig capsizes and sinks, leading oil to discharge through the gulf.
  • 30 April: Then BP boss Tony Hayward says company accepts responsibility for the spill and promises to compensate all those affected.
  • 22 June: After receiving criticism for his handling of the crisis - including comment he would like his life back - Hayward hands day-to-day reponsibility for spill operations to Managing Director BOB Dudley - later named as next CEO.
  • 29 September - BP permanently seals the leaking well.

BP claims 3.26 million barrels leaked from the well in total, while the US government puts the spillage at around 4.9 million barrels.

BP 'strongly disagrees' with Gulf of Mexico ruling

BP says it plans to appeal a US court's ruling that it was grossly negligent in the lead up to the Gulf of Mexico oil spill.

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.

– BP

The Court is yet to rule on the number of barrels spilled, which will be key in determining the fine it orders BP to pay.

BP will also seek to show that its conduct merits a penalty below the maximum applicable, the company said in its statement.

BP shares tumble after Gulf of Mexico ruling

BP shares appear set for their worst one-day fall since 2010 after a judge ruled the oil company had been negligent in events leading up to the 2010 Gulf of Mexico oil spill.

The company's shares were down by 6% at the close of trading in London - making it the worst performer on the FTSE 100.

The ruling could add billions of dollars in fines to the more than £25 billion the company has already been charged for the disaster.

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