Five questions answered on BP's record fine

Criminal fine over Deepwater Horizon disaster.

A US court has approved the biggest ever criminal fine given in the US to British oil company, BP, for the 2010 Deepwater Horizon disaster. We answer five questions on the record breaking fine.

How much has BP been fined?

 BP will pay $4bn (£2.5bn) to the US Department of Justice, $1.26bn of which is a criminal fine. The sum also includes $2.4bn to be paid to the National Fish and Wildlife Foundation and $350m to be paid to the National Academy of Sciences, over a period of five years.

BP will also pay $525m to the Securities and Exchange Commission over a period of three years.

Why has BP been handed this fine?

In November BP agreed to pay this amount and plead guilty to 14 criminal charges relating to the 2010 Deepwater Horizon disaster, which was the biggest oil spill in US history. An explosion at the rig located in the Gulf of Mexico resulted in 11 workers loosing their life and an estimated 4.9 million barrels of oil escaping into the sea. The disaster occurred in April but the well wasn’t permanently shut until September.   

What did BP officials say in response to the fine at the hearing?

Speaking at the hearing to the court, families of the dead and other victims of the disaster Vice President of BP America, Luke Keller, said:

"We - and by that I mean the men and the women of the management of BP, its board of directors, and its many employees - are deeply sorry for the tragic loss of the 11 men who died and the others who were injured that day," said Mr Keller.

"Our guilty plea makes clear, BP understands and acknowledges its role in that tragedy, and we apologise - BP apologises - to all those injured and especially to the families of the lost loved ones.

"BP is also sorry for the harm to the environment that resulted from the spill, and we apologise to the individuals and communities who were injured."

What other repercussions does BP face in relation to the Deepwater Horizon spill?

Currently, two BP workers have been indicted on manslaughter charges and an ex-manager has been charged with misleading Congress.

BP is also in the process of reaching a settlement with other firms such Transocean, the owner of the rig who was responsible for the safety valve, and Halliburton, who provided cementing services. A civil trial that will determine negligence is due to begin in New Orleans in February.

What has American officials said about the record fine?

As quoted by the BBC the US Attorney General Eric Holder said:

"Today's guilty plea and sentencing represent a significant step forward in the Justice Department's ongoing efforts to seek justice on behalf of those affected by one of the worst environmental disasters in American history."

He added: "I'm pleased to note that more than half of this landmark resolution - which totals $4bn in penalties and fines, and represents the single largest criminal resolution ever - will help to provide direct support to Gulf Coast residents as communities throughout the region continue to recover and rebuild."

Record fine over Deepwater Horizon disaster. Photograph: Getty Images

Heidi Vella is a features writer for

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.