BP’s hopes of reaching a settlement over the Deepwater Horizon catastrophe were dealt a blow yesterday after it emerged that the US government intends to prove gross negligence or wilful misconduct at trial.
The US Department of Justice (DoJ) said the oil giant displayed a “culture of corporate recklessness” – the clearest sign yet that it will push for the maximum possible penalties following the spill in 2010.
If the DoJ can establish gross negligence, it could mean up to £13.2billion in costs but there could be further compensation to come. Government lawyers said in the memo: “The behaviour, words and actions of these BP executives would not be tolerated in a middling-size company manufacturing dry goods for sale in a suburban mall. Yet they were condoned in a corporation engaged in an activity that no less a witness than former BP chief executive Tony Hayward himself described as ‘comparable to exploring outer space’.”
The memo from the DoJ was in response to BP’s £4.9billion settlement to compensate fishermen and other small claimants, known as the Plaintiffs Steering Committee (PSC).
A spokesman for BP said: “In its filing, the US government made clear that it does not oppose the settlement reached by BP and the PSC resolving economic loss and property damage claims stemming from the Deepwater Horizon oil spill.
“Other issues raised by the government simply illustrate that disputes about the underlying facts remain.
“BP believes it was not grossly negligent and looks forward to presenting evidence on this issue at trial in January.”