Gulf oil spill: BP set to avoid gross negligence charge
The national commission found no evidence the Deepwater Horizon blowout was the result of 'aberrational decisions made by rogue industry or government officials'.
Shares rise as US commission blames 'systemic' causes for spill and analysts say inquiry unlikely to contradict findings.
BP is likely to be cleared of the potentially ruinous charge of gross negligence, according to City analysts, after a powerful US commission blamed "systemic" causes for the Gulf of Mexico disaster.
The company's shares rose by more than 2% in trading this morning after Barack Obama's national commission released part of its final report into the disaster, before full publication on Tuesday.
The report is the first of several parallel investigations, and will influence the crucial inquiry carried out by the US department of justice (DoJ). Unless evidence comes to light showing that BP wilfully or singularly disregarded safety in the run-up to the world's biggest accidental offshore oil spill, the DoJ is unlikely to contradict the commission's findings and recommend a charge of gross negligence. BP is understood to expect the DoJ to conclude its inquiry in the second half of this year.
BP's shares have now recovered almost two-thirds of their lost value since the crisis peaked in June as investors bet that the worst is over for the company.
Peter Hitchens, of stockbrokers Panmure Gordon & Co, said he expected BP to resume paying dividends – which were suspended last summer under intense White House pressure – when it reports results on 1 February.
The company is likely to reduce the pre-spill level of its $10bn annual shareholder payout by almost half initially. Investors could receive dividends for the last quarter of 2010 as soon as March.
Hitchens said: "The national commission's report is another chink of light for BP. BP was named and held responsible in the report but it also said 'We can't solely blame BP.' It's hinting that there won't be a finding of gross negligence. What seems to be coming through is there was an unfortunate string of accidents which led to the disaster. BP had a near-death experience. But time is a great healer for BP it seems."
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60 Minutes: A tale of two wells...
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Blowout: The Deepwater Horizon Disaster
A Survivor Recalls His Harrowing Escape; Plus, A Former BP Insider Warns Of Another Potential Disaster
http://www.cbsnews.com/stories/2010/05/16/60minutes/main6490197.shtml
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Jan 6, 2011 at 2:18 PM
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« BP Questions Linger: A Tale Of Two Wells (VIDEO) »
A Survivor Recalls His Harrowing Escape; Plus, A Former BP Insider Warns Of Another Potential Disaster
http://www.cbsnews.com/stories/2010/05/16/60minutes/main6490197.shtml