17th Aug 2015 11:11
LONDON (Alliance News) - BP PLC has said the claims that the company manipulated and rigged wholesale gas prices in the US are "entirely without merit" and "overwrought speculative fiction", the Financial Times reported Sunday.
Last Thursday, the FT said BP faced the prospect of fresh regulatory fines after a US judge ruled that its energy traders rigged the natural gas market in Texas in the aftermath of a 2008 hurricane.
It was alleged the FTSE 100-listed oil and gas giant's traders based at the company's Southeast Gulf Texas office plotted to lose some money on physical gas positions in order to boost the value of holdings of financial derivatives tracking gas.
On Monday, the FT, citing the US Federal Energy Regulatory Commission said BP only made a tiny USD249,000 profit from the alleged rigging but could face fines of "tens of millions of dollars" which the giant could easily afford.
However, BP plans to appeal against the judge?s ruling before the full commission. If it loses there, the battle is likely to head to the federal courts. In filings BP has argued that the commission staff have not identified "any direct evidence" to support their case.
http://www.ft.com/cms/s/0/bee9ac82-43d0-11e5-af2f-4d6e0e5eda22.html#axzz3j36jKr7E
Shares in BP were down 0.6% at 376.95 pence Monday.
By Joshua Warner; [email protected]; @JoshAlliance
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