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BP court move to halt Gulf payouts | BP court move to halt Gulf payouts |
(about 9 hours later) | |
Oil giant BP has asked a US court to halt payments from its settlement deal over the 2010 Gulf of Mexico oil spill amid concerns about fraud control. | Oil giant BP has asked a US court to halt payments from its settlement deal over the 2010 Gulf of Mexico oil spill amid concerns about fraud control. |
The blast killed 11 workers and released an estimated four million barrels of oil into the gulf. | The blast killed 11 workers and released an estimated four million barrels of oil into the gulf. |
It is the firm's latest move to stop or delay payments under a financial settlement programme. | It is the firm's latest move to stop or delay payments under a financial settlement programme. |
It had expected payouts to total $7.8bn (£4.9bn), but says this has been driven up by excessive fees and bogus claims. | It had expected payouts to total $7.8bn (£4.9bn), but says this has been driven up by excessive fees and bogus claims. |
BP has faced about $42.4bn in charges since the disaster aboard the Deepwater Horizon drilling rig, which triggered the worst offshore oil spill in US history. | BP has faced about $42.4bn in charges since the disaster aboard the Deepwater Horizon drilling rig, which triggered the worst offshore oil spill in US history. |
It has made two previous, unsuccessful attempts, to halt compensation payments. | It has made two previous, unsuccessful attempts, to halt compensation payments. |
It now says all payments should be halted until the court-appointed claims administrator puts efficiency and accounting controls into place. | It now says all payments should be halted until the court-appointed claims administrator puts efficiency and accounting controls into place. |
"There is no assurance that dishonest and illegitimate claims are being detected and denied," said BP spokesman Geoff Morrell. | "There is no assurance that dishonest and illegitimate claims are being detected and denied," said BP spokesman Geoff Morrell. |
"Payment of such claims would cause BP irreparable injury." | "Payment of such claims would cause BP irreparable injury." |
The company believes the existing payout formula is too generous and compensates people who were not harmed. | The company believes the existing payout formula is too generous and compensates people who were not harmed. |
It is waiting for decisions by a federal appeals court on several challenges it has made to the settlement and its payment formula. | It is waiting for decisions by a federal appeals court on several challenges it has made to the settlement and its payment formula. |
BP says there is a risk that hundreds of millions of dollars in claims payments could be fraudulent. | BP says there is a risk that hundreds of millions of dollars in claims payments could be fraudulent. |
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