BP shares slip 1% after new US legal setback over spill payouts
London (Platts)--20May2014/849 am EDT/1249 GMT
BP shares were 1% lower Tuesday after a US appeals court late Monday
rejected the British oil major's latest bid to stem compensation
payments from its Gulf of Mexico spill fund.
The fifth appeals court of New Orleans declined to reconsider a previous
ruling which required BP to honor its original spill settlement from
2012, which allows payouts for damage claims with no proven connection
to the 2010 spill.
It was the third time a US appeal court has upheld the settlement,
scuppering BP's attempts to limit spiraling payouts as the terms of the
deal required no proof that claimants' losses were actually traceable to
the Deepwater Horizon accident.
BP, whose shares were trading at 504.3 pence at 1235 GMT, said it was
disappointed by the decision -- which was backed by eight of full 13
appeal court judges -- and was now considering whether to appeal
further.
BP first filed an appeal in a New Orleans court in March 2013 to thwart
growing numbers of what it said were fictitious and absurd oil spill
compensation payouts related to the 2010 spill.
It initially told investors its spill settlement would not exceed $7.8
billion, but this was soon raised to $9.6 billion as claims escalated
sharply, and BP has said the final bill may be "significantly higher."
BP has taken a charge of $42 billion related to the spill and has
already spent more than $26 billion to cover the clean up and claims by
individuals and businesses.
--Robert Perkins, robert.perkins@platts.com
--Edited by Dan Lalor, daniel.lalor@platts.com
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