Partial Settlement of Liability in Oil Spill

MOEX Offshore 2007 LLC, USA, has agreed to settle its liability in the Deepwater Horizon oil spill in a settlement with the United States valued at USD90 million, according to the Department of Justice, the US Coast Guard and the US Environmental Protection Agency (EPA). Approximately USD45 million of the USD90 million settlement is going directly to the Gulf in the form of penalties or expedited environmental projects. 

According to the terms of the settlement, MOEX will pay USD70 million in civil penalties to resolve alleged violations of the Clean Water Act resulting from the spill and agreed to spend USD20 million to facilitate land acquisition projects in several Gulf states that will preserve and protect in perpetuity habitat and resources important to water quality and other environmental features of the Gulf of Mexico region. At the time of the spill, MOEX was a minority investor in the lease for the Macondo well. It no longer owns any share of the lease.

The terms of today's settlement do not affect the potential liability of, or recoveries from,  other parties involved in the Deepwater Horizon oil spill.

As part of the settlement, USD45 million of the USD70 million in penalties will go to the United States. The money will go toward replenishing the Oil Spill Liability Trust Fund, where by law it will be available to pay for response actions, cleanup and damages caused by future spills. The remaining penalty will go to Gulf states that participate in the settlement.  Those states will receive penalty payments as follows: USD6.75 million to Louisiana, USD5 million each to Alabama, Florida and Mississippi, and USD3.25 million to Texas.

MOEX Offshore has also agreed to secure and protect properties of ecological significance for the Gulf habitats. The company will ensure that properties within the states of Louisiana, Texas, Mississippi and Florida are transferred to, or acquired by, state governments, non-profit groups, land trusts or other appropriate entities, to protect those properties from development.  In all, these projects are expected to cost at least USD20 million. The negotiation process with MOEX included numerous discussions with the Gulf states, who have been indispensible in reaching this important agreement.

This settlement does not affect the government's claims against any other defendant in the Deepwater Horizon lawsuit that was filed on 15^th December 2010. The trial of the first phase of the case is set to begin in federal district court in New Orleans on 27^th February 2012.