BP reaches $7.8bn deal over Deepwater Horizon oil spill

 
Pelican affected by oil in Loiusiana, June 2010 This was the "the worst environmental disaster" the US had ever seen, the president said

BP says it has reached a $7.8bn (£4.9bn) deal with the largest group of plaintiffs suing the company over the 2010 Deepwater Horizon oil rig spill.

It will benefit some 100,000 fishermen, local residents and clean-up workers whose livelihoods or health suffered.

The company has not admitted liability and still faces claims from the US and state governments, and drilling firms.

The rig exploded in the Gulf of Mexico in April 2010, killing 11 workers and leaking four million barrels of oil.

BP says it expects the money to come from a $20bn (£12.6bn) compensation fund it had previously set aside.

"From the beginning, BP stepped up to meet our obligations to the communities in the Gulf Coast region, and we've worked hard to deliver on that commitment for nearly two years," BP Chief Executive Bob Dudley said.

"The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast."

Lawyers for the plaintiffs' group, the Plaintiffs' Steering Committee, said the settlement "does the greatest amount of good for the greatest number of people".

Trial adjourned

A trial in the case, due to begin on Monday, will now be delayed - for a second time - as a result of the deal, Judge Carl Barbier said.

The settlement will "likely result in a realignment of the parties," he said.

The trial is now being adjourned "in order to allow the parties to reassess their respective positions," Judge Barbier said.

The trial was due to resolve claims for damages and civil penalties arising from the spill.

Judge Barbier is an expert in maritime law and has consolidated hundreds of spill-related lawsuits into a single case.

The trial will probably still go ahead in order to apportion blame for the spill among BP and its fellow defendants.

Other companies involved include Transocean, who owned the rig, and Halliburton. All the companies are in dispute with each other over their liability to each other.

BP has so far paid out $7.5bn in clean-up costs and compensation.

US President Barack Obama called the spill "the worst environmental disaster the nation has ever faced".

It took 85 days to permanently stop the release of crude oil.

 

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  • rate this
    +8

    Comment number 111.

    Disasters like Deepwater Horizon are part of the price of fuel.

    As we move into deeper, colder, more hostile environments in search of new oil reserves the technology involved becomes more difficult and more error prone.

    If you want to avoid disasters, stop using oil. If you want to keep using oil, accept that you are complicit in the consequences.

  • rate this
    +24

    Comment number 63.

    It is worth remembering that the costs of the spill were actually increased by US government over reaction. The area affected directly by oil was quite limited. Obama insisted on a fishing ban along the whole coast as part of his bash the foreign company campaign. Much revenue was lost to fishermen and dependent businesses unnecessarily.

    Oh well! That's politics for you.

  • rate this
    +43

    Comment number 45.

    I find it inconceivable that BP are soley responsible for this. What about the rig operators and Haliburton? The US seems to be turning a blind eye to their own operators involvement in this mess. The hearings held at the time were more like lynchings of old. An utter disgrace in a modern democracy. I hope that in the end BP get a fair hearing.

  • rate this
    +14

    Comment number 37.

    Deep Water Horizon will be viewed in retrospect compensation free for all that hi-lighted the high risk of doing business in the US.

    The long term loser will be the US economy.

    Multinational firms will avoid investing in the US or will factor in higher costs to allow for its litigious nature.

 
 

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