Mexican Gulf BP Oil Spill – Criminal Probe Completed

July 28, 2010, 8:03 AM

BP Plc. (NYSE: BP) This Tuesday BP stated that the US Securities and Exchange Commission and Justice Department have launched probe into market trading related to the aftermath of the gulf spill.

The BP Company’s newly appointed Chief Executive Bob Dudley termed the oil spill an awakening call to the entire industry in the wake of losses estimated by the oil major company.

Many US probing agencies looking into various aspects of the Mexican oil spill incidence have completed their findings and the criminal report is ready for further processing and submission to the governing authorities who will initiate their proceedings based on the criminal report prepared.

According to the criminal report it seems the involvement of three companies resulted in an extensive oil spill. There is a likelihood of a one year lapse of time before the charges can be leveled and filed as per report appearing at Washington Post.

Drill ships and response vessels busy with their relief work at the Gulf of Mexico beyond Louisiana coast line are engaged in drilling relief wells at Deepwater Horizon Oil Spill wellhead.

The three named companies are BP Plc, Transocean Ltd and Halliburton Co, which are the initially being targeted in the Broad Range Probe.  The objective of the probe is to examine whether it is true that these firms enjoyed warm and close dealings with the Federal Regulating Agency and whether the oil spill debacle is attributed to laxity favored by the Federal agency officials concerning the alleged companies, resulting in the tragic oil spill scene at the Gulf of Mexico. The Washington Post has reference to law enforcement and other sources.

On the other hand, the federal government is creating at New Orleans a BP Squad, comprised of personnel from the Environment Protection Agency, the US Coast Guard and other associated agencies.  The squad shall investigate whether the company officials submitted untrue information to the regulators, causing obstruction in justice delivery or fabricated test results concerning how device/mechanism failure.

The news report cited above mentions that the “nature of inquiry emerging” implies that the inspectors of the government agency behaved in a lax manner with these companies in exchange for money or other favors from.

The investigating agencies are planning to approach witnesses giving the other real version account of the episode and get details of inside information.

The news report has also referred to a law enforcing official, who said that there can be no immediate verdict and that the trial can run over a year before anyone can be indicted.

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Tags: bp oil spill, gulf of mexico