BP raised the probable cost of the Gulf of Mexico oil spill by $7.7 billion today, lowering its third-quarter net profit by more than 60% despite higher petroleum costs, the Associated Press reports.

The London-based company said it returned to profit for the first time since the April spill, though net income of $1.79 billion was still well below a year-earlier profit of $5.3 billion because of the extra charge, the story said.

The story continues:

BP faces a fine of up to $1,100 under the Clean Water Act for each barrel of oil spilled and may still be barred from gaining new licenses to operate in the Gulf, which accounts for around 10% of its production. The company said it calculated its potential liability for using a range of flow estimates, and assumed that the company would not be found grossly negligent. BP's own investigation admitted a share of the blame, but also laid responsibility on Transocean, which owned the drilling rig, and contractor Halliburton. It has also billed minority partners Anadarko Petroleum Co. and MOEX Offshore nearly $4.3 billion for their share of the accident.

(Posted by Steve Marshall)