BP shares rise sharply on disaster compensation deal

 

BP shares were sharply higher today after its £4.9 billion deal with 110,000 businesses and individuals over the Deepwater Horizon disaster.

The leading blue-chip stock rose more than 2% to 509p as City analysts said the out-of-court settlement worth 7.9 billion US dollars was less than expected and a crucial step towards removing uncertainty over the business.

The US Department of Justice (DoJ) is still bringing a federal negligence case against BP following the explosion on April 2010, which caused millions of barrels of oil to leak into the Gulf of Mexico and killed 11 workers.

If BP is found grossly negligent it could be fined as much as 18 billion US dollars (£11 billion) under the Clean Water Act.

Investec Securities analyst Stuart Joyner said: “Despite the tough rhetoric, the hope will be that the government will now settle.

“BP can now argue to have (pretty much) completed the remediation and compensation process to the environment and individuals.

“We suspect it is not in the White House's interest to drag the process out to the US general election and beyond.”

BP thrashed out an agreement with the Plaintiffs' Steering Committee (PSC) late on Friday night in one of the largest ever class-action settlements.

It expects the money to come from the 20 billion dollar (£12.6bn) compensation fund that it set up following the worst spill in US history.

BP chief executive Bob Dudley said: “From the beginning, BP stepped up to meet our obligations to the communities in the Gulf Coast region and we've worked hard to deliver on that commitment for nearly two years.

“The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast.”

In addition to the legal action from the Department of Justice, BP faces action from the states of Alabama and Louisiana, and from its partners on the rig.

A trial in the case that was due to start on Monday has been postponed indefinitely to allow BP to finalise its deal with the PSC.

BP had been due in the dock in New Orleans alongside contractors Halliburton and Transocean as a single judge decided who was to blame for what happened when the rig exploded. All the companies are in dispute with each other over their liability to each other.

The 2010 spill soiled sensitive tidal estuaries and beaches, killed wildlife and closed vast areas of the Gulf to commercial fishing for months.

Dispersants and siphoning equipment and other methods were successful in getting rid of much of the oil in the ocean, but some environmentalists believe oil beneath the surface could return one day to Gulf shores.

The 2010 spill exposed oil industry failings and forced BP chief executive Tony Hayward to step down.

BP has so far paid out 7.5 billion US dollars (£4.7 billion) in clean-up costs and compensation.

PA

News
Denny Miller in 1959 remake of Tarzan, the Ape Man
people
Arts and Entertainment
Cheryl despairs during the arena auditions
tvX Factor review: Drama as Cheryl and Simon spar over girl band

News
Piers Morgan tells Scots they might not have to suffer living on the same island as him if they vote ‘No’ to Scottish Independence
news
News
i100Exclusive interview with the British analyst who helped expose Bashar al-Assad's use of Sarin gas
PROMOTED VIDEO
Sport
Angel Di Maria celebrates his first goal for Manchester United against QPR
Football4-0 victory is team's first win under new manager Louis van Gaal
Arts and Entertainment
art
News
newsIn short, yes
Arts and Entertainment
Rob James-Collier, who plays under-butler Thomas Barrow, admitted to suffering sleepless nights over the Series 5 script
tv'Thomas comes right up to the abyss', says the actor
Arts and Entertainment
Calvin Harris claimed the top spot in this week's single charts
music
Sport
BoxingVideo: The incident happened in the very same ring as Tyson-Holyfield II 17 years ago
News
Groundskeeper Willie has backed Scottish independence in a new video
people
Arts and Entertainment
The Doctor poses the question of whether we are every truly alone in 'Listen'
tvReview: Possibly Steven Moffat's most terrifying episode to date
News
ebooksAn unforgettable anthology of contemporary reportage
News
i100
Life and Style
Cara Delevigne at the TopShop Unique show during London Fashion Week
fashion
News
The life-sized tribute to Amy Winehouse was designed by Scott Eaton and was erected at the Stables Market in Camden
peopleBut quite what the singer would have made of her new statue...
Sport
England's Andy Sullivan poses with his trophy and an astronaut after winning a trip to space
sport
News
peopleThe actress has agreed to host the Met Gala Ball - but not until 2015
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week
The fall of Rome? Cash-strapped Italy accused of selling its soul to the highest bidder

The fall of Rome?

Italy's fears that corporate-sponsored restoration projects will lead to the Disneyfication of its cultural heritage
Glasgow girl made good

Glasgow girl made good

Kelly Macdonald was a waitress when she made Trainspotting. Now she’s taking Manhattan
Sequins ahoy as Strictly Come Dancing takes to the floor once more

Sequins ahoy as Strictly takes to the floor once more

Judy Murray, Frankie Bridge and co paired with dance partners
Wearable trainers and other sporty looks

Wearable trainers and other sporty looks

Alexander Wang pumps it up at New York Fashion Week
The landscape of my imagination

The landscape of my imagination

Author Kate Mosse on the place that taught her to tell stories
Ashya King: We need to stop being cowardly about death

We need to stop being cowardly about death

Ashya King's story has made us confront the idea of terminal illness, in an age when we've lost the ability to discuss how we face our final days
They talk the talk, but do our leaders have the stomach to face up to the Russians?

They talk the talk, but do our leaders have the stomach to face up to the Russians?

Nato has a commitment to defend the Baltic states, unlike Ukraine. But those in charge seem less than committed, says Rupert Cornwell
Heaven on wheels: Meet the skateboarding padre

Heaven on wheels: Meet the skateboarding padre

Skateboards are no longer just for kids, the oldies are getting in on the act too
Can breakdance divert the young men of Tunisia from the killing fields of Iraq and Syria?

Can breakdance save the Arab Spring generation?

Sarfraz Manzoor gets down with the B-boys (and girls) of north Africa
Face of an angel, but has Cara Delevingne the talent to act?

Face of an angel, but has Cara Delevingne the talent to act?

A film based on the Meredith Kercher murder is a challenging first role for the supermodel