BP settles $7.8bn Gulf of Mexico oil disaster lawsuit
Oil major BP has finalised a $7.8bn agreement with Plaintiffs Steering Committee (PSC) relating to the Deepwater Horizon disaster in the US Gulf of Mexico.
The settlement, expected to be paid from the $20bn trust, which was set up two years ago to help pay for claims from the oil spi;l, aims to resolve the substantial majority of legitimate economic loss and medical claims related to the spill, BP said.
The two firms have asked for a preliminary court approval of the settlement agreements.
BP chief executive Bob Dudley said this settlement demonstrates the company's continued progress in resolving significant issues related to the incident.
"BP made a commitment to help economic and environmental restoration efforts in the Gulf Coast and this settlement provides the framework for us to continue delivering on that promise, offering those affected full and fair compensation, without waiting for the outcome of a lengthy trial process," said Dudley.
The company has already paid more than $22bn towards meeting its commitments in the region, including more than $8.1bn paid to individuals, businesses and governments and about $14bn on operational response.
The oil spill occurred from a sea-floor oil gusher in 2010, following an explosion of the Deepwater Horizon drilling rig, which drilled on the BP-operated Macondo Prospect.
Image URL: The oil spill in the Gulf of Mexico continued for three months in 2010. Photo: courtesy of demis.nl.