Blowout disaster could cost BP up to $65bn

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 02 December 2011 01:19 GMT

BP’s Macondo blowout disaster could end up costing the UK supermajor between $42 billion and $65 billion pre-tax and may not be settled until 2014 or later, writes Noah Brenner .

BP held a briefing in London to explain its possible liabilities to financial analysts before the start of a multi-district litigation trial, which will begin in the Judge Carl Barbier’s court in New Orleans at the end of February.

The company has set aside $42.5 billion to cover the costs of the disaster and has spent about $25 billion to date, according to a report from investment bank Morgan Stanley.

However, it cautioned that BP’s guidance “highlights a number of contingent liabilities that are difficult to quantify and for which…

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