BP Hit by Additional $1.7B Spill Charge

Wednesday, January 17, 2018 @ 09:01 AM gHale


An additional charge of $1.7 billion will be tacked onto BP’s Gulf of Mexico oil spill bill as the energy giant will take the charge in the fourth quarter of 2017 linked to the 2010 disaster.

And BP said in a statement it also expects to be hit by an additional $3 billion of Gulf-related costs this year, up from a previous estimate of $2 billion.

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This brings BP’s total cost linked to the disaster — including fines and compensation to businesses — to around $65 billion at the end of 2017.

“With the claims… work very nearly done, we now have better visibility into the remaining liability,” BP chief financial officer Brian Gilvary said.

“The charge we are taking as a result is fully manageable within our existing financial framework, especially now that we have the company back into balance” on higher oil prices, he added.

Following the announcement, BP’s share price traded down 1.7 percent at 523.6 pence on London’s FTSE 100 index, which was flat overall in morning deals.

BP saw its fortunes and reputation ravaged by the devastating oil spill disaster eight years ago caused by an explosion at the Deepwater Horizon drilling rig hat the company leased.

The blast killed 11 men off the coast of Louisiana and caused 134 million gallons of oil to spew into Gulf of Mexico waters, sparking the worst environmental catastrophe in US history.



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