Bidness Etc takes a look at how the appeals lodged by BP and Anadarko Petroleum in relation to the Deepwater Horizon oil spill were rejected by US Supreme Court.
Earlier Yesterday, BP Plc and Anadarko Petroleum Corporation appeals were rejected by the Supreme Court of United States, regarding the Clean Water Act fines for the biggest Deepwater Horizon oil spill that took place in Gulf of Mexico in 2010.
The appeals rejection leaves the companies vulnerable to billions of dollars in fine for the oil spill disaster that caused the death of eleven rig workers, after the offshore rig explosion and rupture of oil well. The explosion caused millions of barrel of oil spill in the region of Gulf of Mexico. Subsequent to this development, together with the drop in prices of crude oil because of Greek crisis, BP Plc and Anadarko stock price were down by 1.8% and 1.7%, respectively during mid-day trading session.
The government of United States is looking to impose a fine of almost high as $13.7 billion on the London oil major and over a billion dollar from the Texas located oil and gas production and exploration company, Woodlands. After the Supreme Court decision to not interfere in this issue, Carl Barbier, District Judge of United States, in New Orleans might declare the penalties on both the companies any time now. In case of interference, the ruling by the district judge will be suspended.
Earlier, an appeal that is filed in the US Supreme Court, Judge Carl Barbier order was challenged. In 2014, the federal petition court continued Judge Barbier decision that both the companies were automatically liable for the oil spill disaster, as they both were the co-owners of the process. Anadarko and BP had an ownership of 25% and 65% in the operations.
Both the companies implored not to be alleged responsible for the oil spill disaster since it took place due to failure of equipment on the drilling rig that was under Transocean LTD ownership. The largest offshore drilling company of the world has by now agreed to compensate $1 billion in civil penalties, regarding the oil spill.
A ruling was made by Jude Carl Barbier that the British oil company was totally negligent in taking care of its affairs and might be legally responsible for bigger penalties under the Clean WATER Act. The fines most likely to me forced on the company will be the biggest in CWA history, as BP is partially liable for 3.19 million barrel of crude oil spill.
BP Inc. stock was down by 2.56% to $40.29 at market close on Monday June 29.