Moody’s: BP spill bill could reach $60bn

Deepwater Horizon explosion

Business digest: ratings agency suggests final payout could be much higher than BP predicted

LAST UPDATED AT 12:15 ON Wed 20 Apr 2011

The Gulf of Mexico oil spill could ultimately cost BP $60bn, Moody's credit rating agency said today - the anniversary of the Deepwater Horizon disaster.

BP had been budgeting for final costs of no higher than $41bn – based on the assumption that the company would not be found guilty of any gross negligence – but Moody's stresses that the situation remained uncertain.

"We still do not know the total cost and penalties from the spill," Moody's said. "But our analysis suggested the figure would be roughly $40bn to $60bn."

A year ago today the Deepwater Horizon oil rig exploded, killing 11 men and triggering an environmental disaster. Moody's said the outcomes of pending legal cases may not be known until late 2012, but emphasised that BP's $30bn free cash flow and $30bn of assets meant the company would be able to afford a $60bn liabilities payout.

Read a full report at the Daily Telegraph. · 

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