British energy giant
) announced that it would appeal in a U.S. court over settlement
payments relating to the 2010 Deepwater Horizon oil spill. In
2012, a settlement of $7.8 billion was reached over the
reimbursements to be made for the 2010 Gulf of Mexico (GoM) oil
As a reminder, on April 20, 2010, offshore driller
) ultra-deepwater Horizon drilling platform, contracted to BP,
sank following an explosion while operating in the U.S. GoM off
the coast of Louisiana. The incident killed 11 workers and spewed
more than 200 million gallons of crude in what was touted as the
country's worst oil spill ever. Subsequently, a moratorium was
imposed on offshore drilling at water depths of more than 500
feet in the region, which was lifted on Oct 12, 2010.
The breach of Clean Water Act along with other laws led the
U.S. government to take legal action against the main defendants
in the trial - BP, Transocean and
). Several other companies are also involved in the trial.
The appeal from BP would be heard in the 5th U.S. Circuit
Court of Appeals. The company will plead to revise the earlier
settlement, citing concerns that it might to compensate companies
unaffected by the disaster.
London, England-based BP plc is one of the world's largest
energy companies, providing its customers with fuel for
transportation, energy for heat and light, retail services and
petrochemical products. It operates in three segments:
Exploration and Production, Refining and Marketing, and Other
Businesses and Corporate.
Even though the company remained active in its strategic
development during the first quarter, it expects lower production
in the upcoming quarter due to normal seasonal turnaround
activity, particularly high margin production in the Gulf of
Mexico and the North Sea, as well as higher costs. For the second
quarter,the company expects refining margins to be subdued.
For 2013, the company expects refining margins to experience a
downfall from the 2012 level due to turnaround activity. The
company's petrochemicals margins are also expected to remain weak
BP carries a Zacks Rank #2 (Buy). However, there are other
Zacks Ranked #1 (Strong Buy) stock like
PetroQuest Energy Inc.
) which are expected to perform even better over the short term.
BP PLC (BP): Free Stock Analysis Report
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