The future of BP was in doubt last night after the US government launched a criminal investigation into the Gulf of Mexico disaster, the the worst oil spill in American history. US attorney general, Eric Holder, confirmed that a criminal and civil investigation had been opened, sending BP's shares down further before close of trading in the US. The shares fell 13% on the FTSE today, wiping £12bn off the company's value. One stockbroker, Arbuthnot, captured the gloomy mood at the company, saying the disaster "has a real possibility of breaking the company".
Though Holder did not specify which companies would be in the crosshairs of the investigation, the actions of BP are likely to come under close scrutiny.
"We will closely examine the actions of those involved in the spill. If we find evidence of illegal behaviour, we will be extremely forceful in our response," Holder said. He added that "nothing is off the table at this point" on the range of charges prosecutors could pursue, including straightforward criminal charges if they find false statements were made.
BP said it would co-operate fully with any investigation.
"As our review expands in the days ahead, we will be meticulous, we will be comprehensive, and we will be aggressive," Holder told reporters yesterday. "We will not rest until justice is done."
BP's dramatic shares slump sparked a wider plunge on the FTSE 100 Index yesterday. The company is a major constituent of the FTSE, accounting for around 7% of the entire index, meaning that each 10p change in its share price moves the FTSE 100 by nearly 9 points.
Its stock market misery also spells bad news for many of Britain's pension funds, which invest heavily in BP shares. So far the group has lost around a third of its market value – some £40bn – since being thrown into turmoil after the Deepwater Horizon rig exploded and sank on 20 April, killing 11 workers.
After six weeks of failures to block the well or divert the oil, BP is now using robotic machines to cut into the twisted pipes of the well. Engineers are trying to break away the broken riser pipe, and then position a cap over the well's opening. But even if this succeeds, it will temporarily increase the flow of an already huge leak by 20% – at least 380,000 litres – more a day.
