Mitsui Settles US Macondo Liability

Japanese Macondo partner Mitsui has agreed to pay USD90 million to settle its liability in the Deepwater Horizon oil spill in the Gulf of Mexico, the U.S. Department of Justice said on Friday 17th February 2012. The settlement requires Mitsui to pay USD70 million in civil penalties for alleged violations of the Clean Water Act, as well as another USD20 million to facilitate land acquisition projects and environmental clean-up in several Gulf states, DOJ said in a release. 

 

 

Attorney general Eric Holder emphasises that the Department of Justice has not wavered in its commitment to hold all responsible parties fully accountable for what stands as the largest oil spill in US history. "This landmark settlement is an important step - but only a first step - toward achieving accountability and protecting the future of the Gulf ecosystem by funding critical habitat preservation projects."

 

The settlement marks the largest civil penalty ever recovered under the Clean Water Act, DOJ said.

 

Mitsui subsidiary Moex Offshore was a partner in the BP-operated Macondo well, which blew out while drilling in April 2010. The blowout caused the deaths of eleven people as the Transocean semi-submersible Deepwater Horizon sank to the ocean floor. Millions of barrels of oil leaked from the Macondo well in the subsequent months, resulting in the worst offshore oil spill in US history.

 

Moex, which owned 10% of the Macondo well, agreed last year to pay BP USD1.065 billion to be applied to the USD20 billion trust set up by the UK supermajor to meet claims related to the disaster.

 

Under that settlement, BP agreed to indemnify Moex for compensation claims arising from the blowout and spill. That agreement did not include civil, criminal or administrative fines and penalties, claims for punitive damages, and certain other claims.

 

Moex also transferred to BP all its interest in the Macondo block, Mississippi Canyon Block 252.

 

The latest agreement with DOJ does not affect the potential liability of other parties involved in the Macondo oil spill, DOJ said.