BP Set to Agree Criminal Penalty Over Deepwater With US Authorities

Energy giant BP was Thursday set to agree its criminal penalty over the Deepwater Horizon spill with United States authorities.

The company released a statement saying it was in the final stages of resolving its criminal issues with the US Department of Justice. Any agreement, it added, would be subject to approval by US federal courts.

The spill at the Deepwater Horizon drilling site in the Gulf of Mexico cause loss of life and huge environmental damage two years ago. 

The British company has been negotiating with the US Department of Justice and the Securities and Exchange Commission.

National broadcaster the BBC claimed that the company faced a fine in the region of $4 billion (€3.1bn) - the biggest criminal penalty in US history.

A Financial Times report said a settlement would mark another step forward for BP as it attempts to determine the cost of the disaster. The company has already reached a $7.8 billion (€6.1bn) settlement with lawyers representing private sector victims, and still faces a civil trial in the US set to proceed next February.

The Guardian notes that a US presidential commission found the spill was caused by time-saving, cost-cutting decisions by BP, Halliburton and Transocean that created unacceptable risk. The panel  concluded the mistakes were caused by systemic problems rather than the actions of any individuals.