BP may, however, recoup some of these costs if it is successful in any of its suits against its minority partners or the rig owner, Transocean Ltd.
The cost to BP as a result of the Gulf oil spill may well exceed the $ 40 billion that BP has publicly expected. Here is an estimate of what BP may pay:
• As of mid-2013, BP had already spent $ 14 billion to plug the Macondo well and clean up spilled oil.
• In November 2012, BP pleaded guilty to 14 criminal charges and agreed with the Justice Department to pay $ 4.5 billion over five years in fines and other penalties.
• Under the Clean Water Act, BP is subject to civil fines, based in part on the volume of oil spilled as well as the level of BP’s culpability. As of this writing, fines could total anywhere from $ 3.5 to $ 17.1 billion.
• State and local governments around the Gulf are also pursuing compensation for environmental damage suffered. BP has already agreed to provide an initial $ 1 billion for some restoration projects.
• BP set up a $ 20-billion compensation fund in August 2010 to address damages suffered by individuals and businesses. In 2012, BP reached a settlement with tens of thousands of Gulf Coast businesses and individuals for economic and property loss. That settlement set up standards for establishing claims but did not set a cap on the total payments. By July 2013, BP indicated that $ 19.7 billion of the total had been committed. It also stated that there could be another $ 4.5 billion in payments due on claims already submitted. New claims could be submitted until April 2014.
• BP will also have legal fees, estimated by one account at $ 2 billion, including fees of experts necessary to pursue and defend the various legal actions.