Deepwater Horizon Owner to Pay $1.4 Billion for Oil Spill

- January 03, 2013

Transocean Deepwater Inc., the company that owned the Deepwater Horizon oil rig, will pay $1.4 billion in fines and civil penalties for violations that contributed to causing a massive oil spill in 2010, according to an announcement by the U.S. Justice Department on Thursday.

The oil rig exploded in April 2010, causing oil to spew into the Gulf of Mexico for three full months after the accident.

Transocean agreed to a guilty plea to criminal charges of violating the Clean Water Act, and will pay $400 million in fines and $1 billion in civil penalties under the terms of the plea agreement.

The agreement, which still must be approved by a judge, holds Transocean criminally accountable for its wrongful conduct leading to the explosion.

Eleven workers were killed and 17 others were injured in the explosion, and nearly 5 million barrels of oil spilled into the gulf before the well could be capped.