BP plans 3.7 b share buyback

BP Plc plans to spend up to £3.7 billion ($5.9 billion) buying back its shares after agreeing last week to pay record criminal penalties over the Deepwater Horizon disaster, Britain’s Sunday Times said.

BPsaid it would pay $4.5 billion to resolve criminal and civil charges over the April 2010 rig explosion in the Gulf of Mexico that killed 11 workers and caused the worst-ever US offshore oil spill.

It could face a penalty of as much as $21 billion if found guilty of gross negligence under US clean water legislation in a trial starting in February, although the firm has earmarked only $3.5 billion for the case. BP could spend up to £3.7 billion to revive its flagging shares, Sunday Times said, adding buyback could take place early next year.