Gulf of Mexico_Oil Spill

BP has won a legal reprieve from the US Fifth Circuit Court of Appeals in New Orleans, with regard to a certain settlement related to the Gulf of Mexico oil spill that took place in 2010.

The federal appeals court directed judge Carl Barbier to take a fresh look at which claims are valid.

The UK’s oil and gas giant has repeatedly mentioned the misinterpretation of the terms of a settlement, which was reached in 2012 by Barbier and claims administrator Paul Juneau, who was appointed by the court.

According to BP, Juneau’s kind payout formula compensates people and unaffected businesses.

Circuit Judge Edith Brown Clement, who is part of a 2-1 panel majority, was convinced with BP’s argument and forwarded the case back to Barbier.

Initially, BP anticipated that the settlement would cost $7.8bn, but the estimate was increased to $9.6bn July.

"The federal appeals court directed judge Carl Barbier to take a fresh look at which claims are valid."

The settlement was designed to compensate the 20 April 2010 explosion victims of the Deepwater Horizon drilling rig and damage of the company’s Macondo oil well.

With regard to the explosion, BP already paid charges of more than $42bn for clean-up costs, fines and compensation.

During the second round of its legal trial regarding the 2010 Gulf of Mexico oil spill incident, BP faced a fine of up to $18bn (£12bn), which is said to be more than five times the $3.5bn set aside by the company to settle the case.

The second trial will initially look into the efforts put in by the company in sealing the spewing oil well, which leaked oil for 87 days and will then move on to the quantity of oil leaked.


Image: Offshore oil rig Deepwater Horizon.

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