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 Nridigital.com

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John Major's double warning for Theresa May

The former Tory Prime Minister broke his silence with a very loud rebuke. 

A month after the Prime Minister stood in Chatham House to set out plans for free trading, independent Britain, her predecessor John Major took the floor to puncture what he called "cheap rhetoric".

Standing to attention like a weather forecaster, the former Tory Prime Minister warned of political gales ahead that could break up the union, rattle Brexit negotiations and rot the bonds of trust between politicians and the public even further.

Major said that as he had been on the losing side of the referendum, he had kept silent since June:

“This evening I don't wish to argue that the European Union is perfect, plainly it isn't. Nor do I deny the economy has been more tranquil than expected since the decision to leave was taken. 

“But I do observe that we haven't yet left the European Union. And I watch with growing concern  that the British people have been led to expect a future that seems to be unreal and over-optimistic.”

A seasoned EU negotiator himself, he warned that achieving a trade deal within two years after triggering Article 50 was highly unlikely. Meanwhile, in foreign policy, a UK that abandoned the EU would have to become more dependent on an unpalatable Trumpian United States.

Like Tony Blair, another previous Prime Minister turned Brexit commentator, Major reminded the current occupant of No.10 that 48 per cent of the country voted Remain, and that opinion might “evolve” as the reality of Brexit became clear.

Unlike Blair, he did not call for a second referendum, stressing instead the role of Parliament. But neither did he rule it out.

That was the first warning. 

But it may be Major's second warning that turns out to be the most prescient. Major praised Theresa May's social policy, which he likened to his dream of a “classless society”. He focused his ire instead on those Brexiteers whose promises “are inflated beyond any reasonable expectation of delivery”. 

The Prime Minister understood this, he claimed, but at some point in the Brexit negotiations she will have to confront those who wish for total disengagement from Europe.

“Although today they be allies of the Prime Minister, the risk is tomorrow they may not,” he warned.

For these Brexiteers, the outcome of the Article 50 negotiations did not matter, he suggested, because they were already ideologically committed to an uncompromising version of free trade:

“Some of the most committed Brexit supporters wish to have a clean break and trade only under World Trade Organisation rules. This would include tariffs on goods with nothing to help services. This would not be a panacea for the UK  - it would be the worst possible outcome. 

“But to those who wish to see us go back to a deregulated low cost enterprise economy, it is an attractive option, and wholly consistent with their philosophy.”

There was, he argued, a choice to be made about the foundations of the economic model: “We cannot move to a radical enterprise economy without moving away from a welfare state. 

“Such a direction of policy, once understood by the public, would never command support.”

Major's view of Brexit seems to be a slow-motion car crash, but one where zealous free marketeers like Daniel Hannan are screaming “faster, faster”, on speaker phone. At the end of the day, it is the mainstream Tory party that will bear the brunt of the collision. 

Asked at the end of his speech whether he, like Margaret Thatcher during his premiership, was being a backseat driver, he cracked a smile. 

“I would have been very happy for Margaret to make one speech every eight months,” he said. As for today? No doubt Theresa May will be pleased to hear he is planning another speech on Scotland soon. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.