BP reaches $1B settlement with Mitsui/MOEX over Gulf spill

One of BP’s partners in the failed Macondo well in the Gulf of Mexico has agreed to pay BP $1.065 billion to cover its portion of cleanup costs and other liabilities related to the accident.

MOEX Offshore 2007, an affiliate of Japanese conglomerate Mitsui and a 10 percent partner in the well, “has joined BP in recognising and acknowledging the findings by the Presidential Commission that the accident was the result of a number of separate risk factors, oversights and outright mistakes by multiple parties and a number of causes,” BP said in a statement

BP said the money will be applied to the $20 billion trust it established to meet individual, business and government claims, as well as the cost of cleanup and restoration.

In a note to investors, research firm Jefferies says the settlement may be a sign BP is close to settling the major legal disputes surrounding the Gulf spill.

“Although this is only 50% of what BP could claim it is fully entitled to at present, it does suggest that BP is getting closer to settling the entire legal process,” the Jefferies note said. “If this does transpire, it should free up BP to re-enter the Gulf of Mexico, where c. 40% of its global growth prospects lie.”

All eyes will now be on reaching a similar settlement with The Woodlands-based Anadarko Petroleum — which has a 25 percent stake in Macondo — Jefferies said.

The settlement excludes civil and criminal fines, including those that BP is likely to face under the Clean Water Act.

BP has estimated the cost of capping the well, cleaning up and compensating those affected to be more than $41 billion.

“This settlement is an important step forward for BP and the Gulf communities,” said BP CEO Bob Dudley. “MOEX is the first company to join BP in helping to meet our shared responsibilities in the Gulf, and Mitsui, through MOEX USA Corporation, is showing great corporate citizenship in standing behind its affiliate and making a contribution to meet the costs of this tragic accident. We call on the other parties involved in the Macondo well to follow the lead of the MOEX and Mitsui parties.”

8 Comments

  1. Adler

    Morons! BP is nowhere near settling the legal process. They’ll still be litigating 20 years from now.

    #1
  2. Indianpaintbrush

    “The settlement excludes civil and criminal fines, including those that BP is likely to face under the Clean Water Act.”
    —————-
    This should have included “civil suits”. THOSE are the ones that will take years, Adler.

    #2
  3. Trail Trash

    I wonder if Anadarko is still going to try and hide behind their claims of “gross negligence”.

    #3
  4. oilguy57

    Anadarko isn’t hiding…BP was negligent. They did things that no one else in the industry would do, and they failed to recognize clear signs that something major was wrong. The only reason the BOP’s failed to work was the well was already blowing out. MOEX caved…they should not have paid up.

    #4
  5. Duh

    Let’s not try to sugar coat. As within the failure of the entire country, we have people in power that can only spill as much as the politics of the next country will allow. Once again, there is no accountability for the rich.

    #5
  6. Trail Trash

    oilguy57, I agree that BP was “negligent”, as was TransOcean, but “gross negligence” is a legal definition that Anadarko is going to have a hard time making stick in court. I don’t fault Anadarko for trying, but public sentiment could turn against them if they don’t pony up like MOEX did.

    #6
  7. I’d like to point out that the Oil Spill Distress Helpline is a free and confidential resource available to those affected by the Oil Spill. This service, supported by the Health and Human Services’ (HHS) Office of Substance Abuse and Mental Health Services (SAMHSA), works to connect folks in the Gulf Coast regions with counselors trained in providing emotional support and resource guidance. We are available 24/7 at 1-800-985-5990, or you can text “TalkWithUs” to 66746 to speak with our dedicated staff. More information can be found on our website at http://samhsa.gov/oilspilldistress

    #7
  8. roger1

    .
    The Mitsui-Moex settlement with BB is the very essence of dissembling. Gross negligence by BP and the federal MMS caused the fatal MACONDO explosion. BP and the federal government subsequently scuttled the ship, creating the largest oceanic petroleum spill in American history. The fraudulent federal hearings continued the criminality. This so called ‘out of court settlement’ merely expands the scope of the frauds.

    This ‘out-of-court’ settlement is a ceremonial dance of nations and corporations. The players are being less than candid. The BP MACONDO blowout caused $100B in US damages. GE defective nuclear containment designs have caused, perhaps $3T in Nippon damages. Both companies were knowingly, willfully, provably and criminally negligent. Unlawful deaths have occurred. GE and BP have their hooks in the equally culpable White House.

    The music has started. Up goes the curtain. Japan, England and the USA are dancing with GE, Hitachi and TEPCO. Now BP and Mitsui join in the deadly nuclear charade. You wreck one ocean. We wreck another. Let’s make a deal that shields BP and GE.

    #8