BP Spill Deal Possible This Week After Mitsui, Oppenheimer Says

BP Plc (BP/), operator of the Macondo well that caused the U.S.’s worst oil spill, may reach a settlement for the disaster this week after a partner agreed on fines, an Oppenheimer & Co. analyst said.

Mitsui & Co. (8031)’s MOEX Offshore 2007 LLC will pay $90 million to the U.S. and five states to settle pollution violations related to 2010 spill. While BP will probably have to accept different terms as the operator, the settlement suggests that BP would pay $585 million for violations, less than 20 percent of what the company has provisioned, said Fadel Gheit, an analyst at Oppenheimer in New York. BP rose to the highest since March in London trading.

This is only the civil part and does not include possible criminal charges and penalties,” Gheit said in an e-mailed response to questions. “The trials will begin later this month and all parties are eager to settle before then. So there could be very important decisions this week.”

BP shares remain 26 percent below their level in London before the spill and the company has claimed about $40 billion in charges to cover the costs of litigation and cleanup. Chief Executive Officer Bob Dudley said Feb. 7 that the company would like to reach a settlement if the terms are right.

http://www.bloomberg.com/news/2012-02-20/bp-spill-deal-possible-this-week-after-mitsui-oppenheimer-says.html