Transocean agrees to pay $1.4bn spill fine

<p>Transocean has agreed to pay $1.4 billion in a settlement over the Deepwater Horizon disaster.</p>

Investors snapped up shares in Transocean at close of play in New York last night (January 3rd), after Transocean agreed to a settlement over the Deepwater Horizon spill in the Gulf of Mexico.

The Swiss company owned the rig, which exploded in April 20th 2010 killing 11 workers and hemorrhaging millions of gallons of oil into the sea, causing one of the biggest environmental disasters in the history of the US.

Transocean will pay $400 million (£248 million) in criminal penalties and a $1 billion civil fine after pleading guilty to violating the Clean Water Act.

In December, BP's agreement with US authorities worth $4.5 billion included a $1.2 billion criminal fine.

US attorney general Eric Holder stated: "This resolution of criminal allegations and civil claims against Transocean brings us one significant step closer to justice for the human, environmental and economic devastation wrought by the Deepwater Horizon disaster."

When Wall Street closed last night, Transocean shares were up by 6.4 per cent on the New York Stock Exchange to $49.20 per unit.

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