This article was first published by Seeking Alpha on Jul. 3, 2015.
By Sarfaraz A. Khan
Summary: BP
has finally reached agreements to settle claims related to the 2010 Gulf of
Mexico oil disaster. The settlement removes the dark clouds of uncertainty that
have been hanging over this stock and will allow the company to re-focus on its
core exploration and production work. The settlement will also fuel takeover
speculation, with Exxon Mobil as the most likely buyer, albeit an acquisition
is not going to be easy.
On Thursday,
Bloomberg revealed that BP (NYSE:BP), one of Europe's leading vertically
integrated energy companies and the prime suspect in the 2010 Gulf of Mexico
oil disaster, has reached a settlement with the U.S. and five Gulf Coast states
following a lengthy legal battle. The revelation was later confirmed by BP in a
press release in which the company said that it has reached agreements to
settle all federal and state claims arising from the incident which led to the
death of 11 people and the worst oil spill in U.S. history.
The company
has agreed to pay the U.S. $5.5 billion in civil penalty under the Clean Water
Act (CWA) over a period of 15 years, $7.1 billion to the U.S. and Alabama,
Florida, Louisiana, Mississippi and Texas for natural resource damage also
payable over 15 years, $4.9 billion to Gulf Coast states to settle economic and
other claims payable over 18 years and up to $1 billion to resolve claims
related to more than 400 local government bodies. Overall, BP will pay $18.7
billion to settle …. Read full article at Seeking Alpha.
