BP court move to halt Gulf payouts

Deepwater Horizon, April 2010 BP's Deepwater Horizon oil platform exploded in April 2010

Related Stories

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.

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.

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 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.

"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.

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.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories



  • Two women in  JohanesburgYour pictures

    Readers' photos on the theme of South Africa

  • Worcestershire flagFlying the flag

    Preserving the identities of England's counties

  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health

  • The OfficeIn pictures

    Fifty landmark shows from 50 years of BBC Two

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.