On 15 November 2012, BP reached an agreement with the US government
to resolve all federal criminal and securities claims arising out of the
Incident and comprising settlements with the US Department of Justice
(DoJ) and the SEC. For a description of the terms of the DoJ and SEC
settlements, see Legal proceedings on page 264. Under the DoJ
settlement, BP has agreed to retain an independent third-party auditor who
will review and report to the probation officer, the DoJ, and BP regarding
BP Exploration & Production’s (BPXP) compliance with the key terms of
the settlement including the completion of safety and environmental
management systems audits, operational oversight enhancements, oil spill
response training and drills and the implementation of best practices. The
DoJ settlement also provides for the appointment of an ethics monitor and
a process safety monitor. See Gulf of Mexico oil spill on page 39. The DoJ
criminal and SEC settlements impose significant compliance and remedial
obligations on BP and its directors, officers and employees. Failure to
comply with the terms of these settlements could result in further
enforcement action by the DoJ and the SEC, expose BP to severe
penalties, financial or otherwise, and subject BP to further private litigation,
each of which could impact our operations and have a material adverse
effect on the group’s business.
On 15 November 2012, BP reached an agreement with the US government
to resolve all federal criminal and securities claims arising out of the
Incident and comprising settlements with the US Department of Justice
(DoJ) and the SEC. For a description of the terms of the DoJ and SEC
settlements, see Legal proceedings on page 264. Under the DoJ
settlement, BP has agreed to retain an independent third-party auditor who
will review and report to the probation officer, the DoJ, and BP regarding
BP Exploration & Production’s (BPXP) compliance with the key terms of
the settlement including the completion of safety and environmental
management systems audits, operational oversight enhancements, oil spill
response training and drills and the implementation of best practices. The
DoJ settlement also provides for the appointment of an ethics monitor and
a process safety monitor. See Gulf of Mexico oil spill on page 39. The DoJ
criminal and SEC settlements impose significant compliance and remedial
obligations on BP and its directors, officers and employees. Failure to
comply with the terms of these settlements could result in further
enforcement action by the DoJ and the SEC, expose BP to severe
penalties, financial or otherwise, and subject BP to further private litigation,
each of which could impact our operations and have a material adverse
effect on the group’s business.
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