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Conflict resolution is probably what the UK oil giant, BP plc (LSE:BP.), has been studying for quite some time now as within a week, the London-based firm was able to come up with amicable ways to settle cases and disputes with authorities and partners.
In a statement today, the integrated energy company said it is in advanced talks with two of the United States’ agencies, the Department of Energy and the Securities and Exchange Commission, to put an end to all criminal and corporate cases filed against it in connection with the Gulf of Mexico oil spill of 2010.
The explosion at the Deepwater Horizon rig that killed 11 people on 20th April 2010 caused the largest oil spill accident in history after spilling over 4.9 million barrels of oil over a large area around the Gulf of Mexico and affected several industries, including fishing and tourism.
According to BP though, federal claims, federal and state natural resource damages claims, private civil claims, private securities claims, and state economic loss claims, are not included in the negotiations.
Hundreds of lawsuits have been filed to courts by different private and government entities with BP paying at least US$8.8 billion for claims and other costs as of 30th October 2012.
Gross negligence alone, covered by the US’ Clean Water Act, may cost BP between US$5 billion and US$21 billion in civil penalties, according to one report.
BP has been divesting assets since then to fund a costly litigation and the US$20 billion Gulf of Mexico Trust Fund, with the company scheduled to drop the final cheque of US$860 million during the fourth quarter of this year.
No final agreements have yet been reached, BP said, and the US federal courts will still have to approve any resolutions decided by the parties.
“Until final agreements are reached, there can be no certainty any such resolutions will be entered into,” BP clarified.
The announcement came two days after the firm also advised a comprehensive agreement to settle disputes related to its Russian joint venture, TNK-BP, has been reached with its partner.
On the London Stock Exchange, shares of the FTSE 100 constituent were slightly down by 0.5% to 423.15 pence a share at 10:40 AM GMT, two hours after the announcement was made.
