Research and Markets - BP Drop Bid to Avoid USD 1 Billion Fee

03 May, 2016, 09:32 ET from Eberts Ltd T/A Research and Markets

DUBLIN, May 3, 2016 /PRNewswire/ --

BP Plc has been allowed to drop its bid to avoid paying close to USD 1 billion in oil spill damages to seafood producers operating in the Gulf of Mexico. The supermajor oil and gas company spent two years trying to avoid paying the full USD 2.3 billion promised as compensation to the shrimpers, oystermen and fishermen whose livelihoods were damaged by the 2010 Gulf of Mexico oil spill. The catastrophe saw over 4 million barrels of crude oil pumped into the Gulf following a well blowout, blackening the shores of five states in the U.S. The Gulf of Mexico well intervention market is predicted to be worth USD 0.74 billion by 2017, according to a report available from Research and Markets, a figure no doubt influenced by BP's negative impact in the area.  

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BP has so far paid around USD 1 billion to seafood producers, but became hesitant to pay the remainder after a Texas attorney involved with the case was indicted for allegedly falsifying his 40,000 plus client list. Mikal Watts claimed to represent thousands of Vietnamese American captains and crew members, which bolstered his position in the case against BP, but federal prosecutors are claiming the list is filled with fake names and Social Security numbers. A New Orleans federal judge allowed BP to drop its avoidance bid on Monday, which is part of a larger settlement estimated at around USD 12.9 billion.

The global oil spill management market is expected to reach a value of USD 125.6 billion by 2022, as forecast in a recent report, but it's likely that BP's heavy compensation will result in further investment in this area, spurring on additional growth. It may also spur growth in related oil safety markets, such as the global oil and gas pipeline leak detection market which is projected to cross USD 1.8 billion by 2020.

For further information on this topic, and a full list of all related documentation, please visit the Oilfield Equipment and Services section at http://www.researchandmarkets.com/rm/OIKJ.

Source: http://www.bloomberg.com/news/articles/2016-05-03/bp-drops-fight-over-1-billion-seafood-industry-spill-payments

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SOURCE Eberts Ltd T/A Research and Markets