BP share price slumps, found grossly negligent, up to$20bn more in penalties

BP Plc shares plummeted late on Thursday, after a US judge ruled that the company was found guilty of “gross negligence and willful misconduct” over the 2010 Deepwater Horizon oil spill, the worst offshore spill in the US.

US District Judge Carl Barbier, who called BPs conduct “reckless”, has yet to rule on how much crude had spilled, which would also determine the amount BP would have to pay. According to the US Clean Water Act, the maximum penalty in cases where gross negligence led to a spill, such as with BP, is $4 300 per barrel. Experts have approximated the Deepwater Horizon spill at some 4-5 million barrels, which suggest the possibility of a stupendous fine of some $20 billion for the oil major, roughly BPs whole 2013 profit.

The court will begin proceedings on the volume of spilled crude, and BPs fine, in January 2015.

“The court’s findings will ensure that the company is held fully accountable for its recklessness,” U.S. Attorney General Eric Holder said. “This decision will serve as a strong deterrent to anyone tempted to sacrifice safety and the environment in the pursuit of profit.”

In a statement on its website, the British oil giant said it “strongly disagrees” with the courts ruling, and said that it will immediately appeal to the United States Court of Appeals.

Judge Barbier ruled Transocean and Haliburton were also guilty of negligence, with 30% and 3% fault, respectively, the remaining 67% attributed to BP.

BP had set aside some $43bn in the wake of the disaster to cover any legal costs. The company has already payed $4.5bn to settle the criminal suit against it, and pledged $20bn to cover costs and settlements of the civil suit.

The ruling comes just two days after BP moved to have oil spill claims administrator replaced, saying he is biased, dishonest and incompetent.

BP Plc was up 0.88% to trade at 459.00 GBX (~$7.55) at 8:15 GMT, valuing the company at £84.23 (~$138.58bn), after closing Thursday 5.9% lower.