This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-33363672
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
BP to pay £12bn for Gulf oil spill | BP to pay £12bn for Gulf oil spill |
(35 minutes later) | |
BP has reached an $18.7bn (£12bn) settlement with the US Department of Justice (DoJ) following the 2010 Gulf of Mexico oil spill. | |
It comes as a US federal judge was expected to rule on how much BP owed in Clean Water Act penalties following the environmental disaster. | It comes as a US federal judge was expected to rule on how much BP owed in Clean Water Act penalties following the environmental disaster. |
Over 125 million gallons of oil spewed into the Gulf after an explosion at the Deepwater Horizon oil rig in 2010. | Over 125 million gallons of oil spewed into the Gulf after an explosion at the Deepwater Horizon oil rig in 2010. |
The settlement is the largest paid by a single company in US history . | |
The Deepwater Horizon oil spill was one of the worst environmental disasters in US history and claimed the lives of 11 people. | |
In December the US Supreme Court rejected the oil giant's legal challenge over an original compensation deal agreed in 2012. | |
At the time BP had already paid out $2.3bn in so-called business economic loss claims out of a total of $4.25bn in compensation claims to individuals and businesses, according to Patrick Juneau, the administrator appointed by the courts to handle claims. | |
The settlement process is also separate from other court proceedings relating to the spill, including environmental and criminal penalties. | |
BP has said its costs associated with the oil spill have already exceeded $43bn even without the Clean Water Act fine. | |
'Realistic' | |
US Attorney General Loretta E Lynch said the BP settlement was the largest to be paid by a single company in US history. | |
"If approved by the court, this settlement would be the largest settlement with a single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come," she said. | |
In a statement, Bob Dudley, BP's group chief executive, called the settlement 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." | |
Under the agreement BP will;: | |
BP said it expected impact of the settlement to be to "increase the cumulative pre-tax charge associated with the Deepwater Horizon accident and spill by around $10bn from $43.8bn at the end of the first quarter". | |
BP's share price rose 4.6% at 438p following the announcement of the deal. |