Transocean, the owner of the drilling rig that sank after an explosion that killed 11 workers and led to the massive 2010 oil spill in the Gulf of Mexico, has agreed to pay $1,4 billion in various penalties.

The US Justice Department detailed the settlement in length late yesterday and the basic summation of the fines is that Transocean will pay $1 billion in civil penalties, $400 million in criminal penalties, as well as plead guilty to a misdemeanour charge of violating the Clean Water Act.

The majority of the penalties will fund environmental restoration projects and spill-prevention research and training. The company has been given two years to pay the $1 billion civil penalty, although it had previously already set aside $2 billion for such penalties.

BP had been leasing the rig from Transocean at the time of the accident and has already agreed to pay another record $4,5 billion in penalties. BP was also forced to plead guilty to manslaughter and other criminal charges related to the spill.

Switzerland-based Transocean will now also have to implement various operational safety and emergency improvements across its fleet of rigs. The deal is still however subject to a federal judge’s approval.

Said Attorney General Eric Holder said in a statement:

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.

Said Transocean:

These important agreements, which the company believes to be in the best interest of its shareholders and employees, remove much of the uncertainty associated with the accident. This is a positive step forward, but it is also a time to reflect on the 11 men who lost their lives aboard the Deepwater Horizon. Their families continue to be in the thoughts and prayers of all of us at Transocean.

US government investigations have thus far found that the blame for the US’s worst offshore oil spill should be spread amongst all parties involved, including various contractors.

Other civil claims are still pending, and BP is expecting to pay out a further $7,8 billion, but these settlements are not capped.

The rig had been drilling in water 1,5km deep, about 80km southeast of the Louisiana coast when it exploded on the night of April 20, 2010. It burned for 36 hours before sinking and it has been claimed that crewmembers failed to properly investigate clear signs that the well was not secure and that oil and gas were flowing into the well.

[Source: NYDaily]