BP: U.S. deal over oil spill fines not guaranteed

Published Oct 30, 2012 at 10:00 am (Updated Oct 30, 2012)

British oil giant BP says in its third-quarter earnings report that the company is uncertain whether a settlement with the U.S. government can be reached for the 2010 Gulf of Mexico oil spill, adding that its quarterly profit rose more than 5% despite a drop in revenue due in part to lower production of oil and gas. The company, whose U.S. offices are based in Houston, says profit for the three-month period came to $5.50 billion, compared to $5.22 billion a year earlier, The Houston Chronicle reports. Revenue in the quarter came to $93.12 billion, a 4.7% drop compared to $97.73 billion a year earlier. Still, BP says it would increase its quarterly dividend to 9 cents per share, which is expected to be paid in the fourth quarter. BP also confirms in its earnings release that it is in ongoing discussions with the Justice Department and other federal agencies regarding a possible settlement related to the Deepwater Horizon disaster. BP says it is ready to settle on reasonable terms, but that unresolved issues remain and "there is significant uncertainty as to whether any agreement will ultimately be reached." BP could face up to $21 billion in Clean Water Act fines alone, based on the amount of oil that was discharged—some 206 million gallons, based on government estimates—and the U.S. allegation that BP was grossly negligent. The company says its costs to date regarding the oil spill total about $59 million, about $4.3 million of which has been paid toward individual and business claims.