Oil giant BP is in advanced discussions with US agencies about settling criminal and other claims from the Gulf of Mexico well blowout two years ago.
However, the group said “no final agreement has yet been reached” and any such agreement would still be subject to court approvals.
BP said the proposed settlement would not include civil claims under the Clean Water Act (CWA) and other legislation, pending private civil claims and state claims for economic loss.
The explosion and fire aboard the Deepwater Horizon rig in April 2010 killed 11 workers and set off a spill that continued for 87 days, affecting large areas of the southern coast of the US.
Any settlement is expected to dwarf the largest previous corporate criminal penalty handed down by the US Department of Justice – the $1.2 billion (£757 million) fine imposed on drug maker Pfizer in 2009.
Peter Hutton, analyst at RBC Capital Markets, said claims under the CWA are potentially one of the heaviest liabilities, with a “tariff” of damages ranging from $1,100 to $4,300 per barrel spilled if BP is guilty of gross negligence.
He added: “Our working assumption is that 4.9 million barrels were spilled, although this is likely to be challenged if the case comes to court. On this basis, the maximum under the CWA would be $21bn.”
BP has sold off large chunks of its business as part of its pledge to raise cash to pay the costs of the Deepwater Horizon disaster. It expects to make a final payment of $860m into the $20bn Gulf of Mexico Trust Fund in the fourth quarter.
