US probes inside trade at BP
By Rachelle Younglai and Kristen Hays |
August 4, 2010, Wednesday
|
Print Edition
Print Edition
BP faces an investigation into whether its employees profited illegally from the Gulf of Mexico spill, as the oil giant prepared yesterday to kill the blown-out well for good.
United States securities regulators are investigating potential insider trading in shares of BP, including by BP employees, two sources familiar with the probe told Reuters.
Analysts said the inquiry showed how the full weight of the government was being brought to bear on BP, which took a US$32.2 billion charge related to the spill in its results last week.
BP could face more pressure, however, after US government data showed on Monday that almost 5 million barrels of oil leaked before the well was capped in mid-July, suggesting the company had underestimated the cost by at least US$1 billion.
Meanwhile, BP's 10 percent partner in the well, Japan's Mitsui, has yet to decide if it will shoulder any costs, helping the trading house to report a 79 percent jump in profits to 102.5 billion yen (US$1.18 billion).
BP had estimated the well had leaked some 4 million barrels of oil and that it would be fined US$1,100 per barrel.
The company faces fines of US$4,300 per barrel if gross negligence is proven, but said it saw no need to change its provision as a result of the new estimate.
"Given these new figures, BP could be fined US$4.5 billion if gross negligence is not proven or up to US$14 billion if it is," one dealer said.
United States securities regulators are investigating potential insider trading in shares of BP, including by BP employees, two sources familiar with the probe told Reuters.
Analysts said the inquiry showed how the full weight of the government was being brought to bear on BP, which took a US$32.2 billion charge related to the spill in its results last week.
BP could face more pressure, however, after US government data showed on Monday that almost 5 million barrels of oil leaked before the well was capped in mid-July, suggesting the company had underestimated the cost by at least US$1 billion.
Meanwhile, BP's 10 percent partner in the well, Japan's Mitsui, has yet to decide if it will shoulder any costs, helping the trading house to report a 79 percent jump in profits to 102.5 billion yen (US$1.18 billion).
BP had estimated the well had leaked some 4 million barrels of oil and that it would be fined US$1,100 per barrel.
The company faces fines of US$4,300 per barrel if gross negligence is proven, but said it saw no need to change its provision as a result of the new estimate.
"Given these new figures, BP could be fined US$4.5 billion if gross negligence is not proven or up to US$14 billion if it is," one dealer said.
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