BP agrees to pay £12billion for oil spill
BP HAS agreed to pay $18.7billion (£12billion) to settle with the American government and five US states over claims resulting from the Gulf of Mexico oil spill five years ago – the biggest environmental disaster in US history.
The Gulf of Mexico disaster
Under the deal with the US Justice Department and the states of Louisiana, Mississippi, Alabama, Florida and Texas, the oil giant has been granted up to 18 years to pay.
BP will pay the US a civil penalty of $5.5billion under the Clean Water Act over 15 years.
Another $7.1billion will go to the US and the five states over 15 years for natural resources damages – in addition to $1billion already committed – while $4.9billion will be paid over 18 years to settle economic and other claims made by the five Gulf Coast states.
US attorney general Loretta Lynch said the settlement, the biggest with a single entity in American history, would “bring lasting benefits to the Gulf region for generations to come”.
This is a realistic outcome which provides clarity and certainty for all parties
This will increase BP’s pre-tax charge for the Deepwater Horizon accident and spill which killed 11 workers by about $10billion to $53.8billion.
BP chief executive Bob Dudley 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.”
BP shares rose 18¼p to 437½p.