BP faces new trial and US$18b in fines over 2010 Deepwater Horizon disaster

Oil giant BP is to fight attempts to fine it up to US$18 billion over the 2010 Deepwater Horizon disaster, at a new trial in New Orleans.

The latest legal battle revolves around its efforts to cap a runaway well, and the amount of oil that entered the Gulf of Mexico during the 87-day spill.

The trial, scheduled to open yesterday and expected to last a month, could add up to US$18 billion to BP's bill - five times the US$3.5 billion set aside for fines. That is on top of the US$42.4 billion it has spent to date on clean-up, claims and fines.

BP is also fighting a second battle to limit payouts to those who lost livelihoods. The company has outspent the US$7.8 billion it set aside for the uncapped settlement, and recently took out newspaper ads saying the system was being abused.

The outcome in New Orleans will hinge on what the court decides about whether BP did everything it could to cap the well. The court will then turn to the dispute over how much oil escaped into the Gulf.

The trial is the second of three phases being heard by US district judge Carl Barbier. The first phase, which wound up in April, was to apportion blame for the events leading up to the blowout among BP and its partners, Transocean and Halliburton.