BP Settlement to Pay $4.5 Billion – Where’s The Money

Monday, April 15th, 2013 By

BP Settlement - Deepwater Horizon

In 2010, BP’s Deepwater Horizon drilling rig caught fire and sank, leading to a disaster in the Gulf of Mexico, Now BP Settlement will pay. Image: ideum/Flickr/CC BY-SA

Oil giant BP has agreed in a BP Settlement to pay the federal government $4.5 billion in penalties for the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. It is the largest such settlement in history. BP still faces civil suits, but don’t worry. It is still making enormous profits. I am curious who has actually seen payouts yet from BP?

BP Settlement and still is doing fine

But don’t cry for BP. While it lost $17.2 billion in the quarter that the spill occurred two years ago, today it is more than profitable. In the ensuing 9 quarters it has earned $43 billion in revenue.

Civil cases to come

Those criminal penalties are in addition to the $20 billion BP has already placed in trust, pending future damage claims. It says it will add another $860 million to those coffers before the end of the year.

The criminal charges may be over, but BP continues to face civil challenges. BP estimates that will cost it another $7.8 billion in legal settlements. Still defiant, however, BP says it is “prepared to vigorously defend itself against remaining civil claims.”

The criminal settlement

The company has agreed to pay the U.S. Department of Justice $4 billion over five years in criminal penalties. Another $525 million will be paid to the Securities and Exchange Commission over a three year period.

The settlement remains dependent upon federal review.

BP pleads guilty to 12 felonies

The London-based petroleum titan has agreed to plead guilty to 11 felony charges of misconduct or neglect that led to the oil spill and to the deaths of 11 drilling rig workers. A 12th felony count was added for obstruction of Congress, due to a misrepresentation of the rate of oil leaking from BP’s operations.

The company also will plead guilty to two misdemeanor charges, one under the Clean Water Act and the other under the Migratory Bird Treaty.

BP said that it was sorry for the oil rig fire and subsequent massive spill, but simultaneously took a moment to pat itself on the back.

Bob Dudley, the CEO of BP, issued a statement:

“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. From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf. We apologize for our role in the accident, and as today’s resolution with the U.S. government further reflects, we have accepted responsibility for our actions.”

Sources

CNN
Forbes
Seattle PI

  • http://www.facebook.com/BrooklynBiatch Alana Glackin

    I am currently a forensic consultant working on the current BP Fund; Deepwater Horizon Economic Settlement Fund. This fund is the result of the largest class action settlement in history!

    • econwell

      Alana, maybe you can answer some of my readers questions. Have any funds actually been paid out on this settlement yet, and when can people expect to start seeing some. When you say this is the result of the largest class action settlement in history, are you talking about within a certain industry or ever period? (That last question is my own because that is incredible)

Previous Article

« Can You Still Make Money on Twitter? – You Can

How to Use Twitter as a Fast Cash Opportunity Just a few years ago, twitter was something people did with their thumbs when bored, and the possibility to make money on Twitter wasn’t in people’s mids. Today, it still involves using your fingers, but engaging in Twitter connects you to a [...] Make Money on Twitter
Next Article

Goldman Sachs Facebook deal and the IPO »

When Goldman Sachs invested $450 million into Facebook, it was big news on Wall Street. They made the news again when people sued Facebook and Goldman Sachs for misleading investors. Where does this leave people today? The Goldman Sachs Facebook deal, plus an additional $50 million investment from a Russian [...] Facebook logo - Goldman Sachs