Anadarko Ordered to Pay $159.5m Fine for 2010 Gulf Spill

Source: Reuters 12/1/2015, Location: North America

A federal judge ordered Anadarko Petroleum Corp to pay a $159.5 million civil fine reflecting its stake in the Gulf of Mexico well whose 2010 blowout caused the largest U.S. offshore oil spill.

In a decision on Monday, U.S. District Judge Carl Barbier in New Orleans said Anadarko was not at fault for the spill.

But he said the company's 25 percent ownership stake in the Macondo well made it part of the "polluting enterprise" responsible for the April 20, 2010 disaster, which included the explosion of the Deepwater Horizon drilling rig and killed 11 workers.

The penalty equates to $50 per barrel of oil spilled, well below the maximum $1,100 per barrel, or $3.51 billion, penalty that Barbier could have imposed under the Clean Water Act.

A $159.5 million fine "strikes the appropriate balance between Anadarko's lack of culpability and the extreme seriousness of this spill," Barbier wrote in a 34-page decision.

In Tuesday morning trading, Anadarko shares were up $1.02, or 1.7 percent, at $60.92.

The payout may resolve the last major legal uncertainty that Anadarko, which is based in The Woodlands, Texas, faced over the spill.

BP Plc owned 65 percent of the Macondo well, while Mitsui & Co's MOEX Offshore 2007 LLC owned 10 percent.

In 2011, Anadarko agreed to pay BP $4 billion to help cover victim claims and cleanup costs.

BP later reached a $20.8 billion settlement with the U.S. government and five Gulf states.

The government had sought a penalty for Anadarko below $3.51 billion but "significantly above $1 billion," reflecting the seriousness of the violation. Anadarko said no fine was justified.

In a statement, Anadarko said it is pleased that the fine is "far less" than the government sought.

It also said it may appeal, and maintained that "penalizing a non-operator for events beyond its control is inconsistent with the intent of the Clean Water Act."

The case is In re: Oil Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico, on April 20, 2010, U.S. District Court, Eastern District of Louisiana, No. 10-md-02179.


Brazil >>  2/26/2024 - Seatrium Limited refers to its previous announcements concerning the ongoing investigations related to “Operacao Lava Jato” (Operation Car Wash) in Br...
France >>  2/26/2024 - BW Energy will release its fourth quarter and full year 2023 results on Wednesday 28 February 2024 at 07:30 CEST. ...

Norway >>  2/26/2024 - Dolphin Drilling AS (Dolphin Drilling, OSE: DDRIL) announced its unaudited results for the three months ended 31 December 2023. ...
Singapore >>  2/26/2024 - Seatrium Limited (“Seatrium” and together with its subsidiaries, the “Group”) wishes to announce the following transactions that occurred during the f...

South Africa >>  2/26/2024 - Africa Oil Corp. ("Africa Oil", or the "Company") is pleased to announce that the Company repurchased a total of 302,250 Africa Oil common shares duri...
United States >>  2/26/2024 - VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“VAALCO”) declared its quarterly cash dividend of $0.0625 per share of common stock for the first quarter o...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.