$9.5 million in penalties in deadly 2012 oil platform blast

Federal prosecutors say an oil industry services company has been ordered to pay $9.5 million in penalties in cases arising from a 2012 offshore platform fire that killed three workers.

The penalties against Houston-based Wood Group PSN were announced Thursday by the U.S. Justice Department in Washington and U.S. attorneys in New Orleans and Lafayette, Louisiana.

Wood Group was ordered to pay $7 million for falsely reporting that safety inspections had been performed on Gulf of Mexico facilities. Another $1.8 million in penalties are for negligently discharging oil into the gulf. And the company was ordered to pay $700,000 for community service projects.

The November 2012 explosion killed three workers on a platform owned by Black Elk Energy Offshore Operations LLC.