BP faces $13.7bn penalty for oil spill

The latest phase of a US trial to decide how much BP should pay in penalties for the 2010 Gulf of Mexico oil spill has ended.

The amount BP could face in Clean Water Act penalties could reach $13.7bn (€12bn), but a decision from the judge is not expected for months.

The New Orleans trial closed after two weeks of testimony and arguments by lawyers for the US justice department, which wants a high penalty, and BP, which wants a lower figure. Lawyers may file briefs in the case as late as April and it remains unclear how soon afterwards that District Judge Carl Barbier will rule.

It was the third phase of a trial to determine penalties arising from the April 2010 explosion of the Deepwater Horizon rig. The disaster killed 11 workers and sent oil spewing into the Gulf for 87 days.

The judge has already issued key rulings after two earlier phases, including that BP acted with “gross negligence”, a decision BP is appealing. He also ruled that 3.19m barrels of oil were discharged. Those two factors could lead to a maximum $13.7bn fine based on a per-barrel penalty.

BP argued that its response to the spill and clean-up was robust, that the economy and environment of the Gulf has recovered strongly, and that it already has run up $42bn in costs, including the clean-up, response, settlements with victims, and criminal penalties.

Government lawyers say a higher-end penalty is called for. They cast doubts about the effect of a high fine on BP Exploration and Production and other BP entities.