Thursday 2 July 2015

BP reaches record $18.7bn settlement for 2010 Gulf of Mexico disaster

Otmane El Rhazi from Mindful Money » Shares.

Five years on from the Deepwater Horizon accident and spill in 2010, BP has reached an agreement to settle all federal and state claims arising from the event.

The oil major is set to pay a record $18.7bn in damages to the US government and five Gulf states as a result of the incident, which is widely regarded as one of the worst environmental disasters in US history.

BBC News reported that the agreement with the US Department of Justice came as a US federal judge was forecast to rule on how much the oil major owed in Clean Water Act penalties following the incident, which saw more than 125mi gallons of oil spill into the Gulf after an explosion at the Deepwater Horizon oil rig.

BP has said its costs have already surpassed $42bn without the Clean Water Act fine.

In a statement Bob Dudley, BP’s group chief executive, said: “This is a realistic outcome which provides clarity and certainty for all parties.

“For BP, this agreement will resolve the largest liabilities remaining from the tragic accident and enable BP to focus on safely delivering the energy the world needs.

“For the United States and the Gulf in particular, this agreement will deliver a significant income stream over many years for further restoration of natural resources and for losses related to the spill.

“When concluded, this will resolve not only the Clean Water Act proceedings but also the Natural Resource Damage claims as well as other claims brought by Gulf States and local government entities.”

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