• Category: News

BP in a $20 Billion Settlement Deal Over 2010 Oil Spill

Following its most catastrophic crisis in its history, British Petroleum (BP), has come to an agreement with the US to pay $20bn over the Deepwater Horizon oil spill.

BP in a $20 Billion Settlement Deal Over 2010 Oil Spill

In 2010, a deep-water oil spill occurred off the Louisiana coast killing 11 workers working for BP. Stemming from the oil rig explosion, millions of oil barrels were spilled into the water for 87 days, before the spill was stopped.

Following the incident, it was certain that BP would incur a lot in loss and compensation though it was not clear, even for the giant oil producer, just how much it would pay. This fresh agreement now eliminates the uncertainty surrounding the anticipated settlement.

The waters of five states including Mississippi, Texas, Alabama, Louisiana and Florida were affected. The local economies and ecosystems were devastated immensely.

Greater certainity over settlement

According to Geof Morrell, BP spokesperson, the settlement provides the oil giant with “clarity over its financial obligations.

The $20 billion deal is the largest the US government has ever entered into with a single company, thereby necessitating a court approval to finalize the deal.

In a July announcement, BP and the US Department of Justice announced that they had come to an $18.7bn agreement. The new figure reflects some of the payments already made by BP.

The US government together with the five affected states will use the compensation money to boost the local economies and alleviate the environmental damages that emanated from the oil spill.

At a press conference at the start of the week, Lorretta Lynch, US Attorney General said, “This historic agreement is an appropriate response to the worst environmental disaster in America.”

This is just one and also the largest legal claims against BP following the Deepwater Horizon crisis. The oil giant is yet to settle some of the pending claims associated with the oil spill.

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