BP will start one of the biggest fights in its history next week as it goes on trial for the devastation caused by the Gulf of Mexico Macondo well disaster.
The firm will be in the dock with contractors Halliburton and Transocean as a judge decides who was to blame for the Deepwater Horizon rig explosion, which claimed the lives of 11 men and led to the biggest oil spill in US history.
The US federal government, several states, local government authorities and hundreds of independent claimants will make their case before federal judge Carl Barbier during a trial which starts in New Orleans, Louisiana, on Monday.
On top of millions of pounds of legal fees, BP and its contractors could face a penalty of up to £13.5billion if the court finds evidence of gross negligence.
BP is expected to attempt to apportion blame on the contractors, in particular US oil service firm Halliburton, which it accuses of providing the wrong type of concrete to seal the offshore well that for months spilled millions of barrels of oil into the sea.
The court case, which could continue into next year, starts amid increased speculation that BP is close to securing an out-of-court settlement; reflected in a recent lift to its share price. Chief executive Bob Dudley has hinted that the company is open to talking to claimants.
He said recently it would be prepared to settle if it could do so on fair and reasonable terms, but added BP was “preparing vigorously for trial”.
There are reportedly 535 individual lawsuits to be heard, covering 120,000 claimants and 72million documents.
BP has set aside £25billion to cover the cost of the disaster on April 20, 2010, which caused nearly 5million barrels of oil to leak into the US gulf.
Washington is entitled to demand compensation amounting to nearly £700 for each barrel spilled and if gross negligence is shown in court, BP and the other companies could be liable for up to £2,700 a barrel.
BP has already reached settlements with some partners in the Macondo well, in which the firm owned a 65% stake. Anadarko had a 25% stake and Moex a 10% share.
US-based Moex paid £56.9million to settle with federal and state governments last week, fuelling speculation that BP could do the same.