bp has agreed to make an early payment of approximately $350m to Louisiana, US and resolve remaining coastal zone lawsuits involving the company, including remaining litigation linked to the 2010 Deepwater Horizon oil spill.
The new agreement was signed by Louisiana Governor Jeff Landry, Attorney General Liz Murrill and bp CEO Meg O’Neill.
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This payment replaces remaining instalments due over the next seven years under the 2015 Deepwater Horizon Economic Damages Settlement.
Previously, bp was scheduled to pay $373m to Louisiana in equal instalments without interest until 2031.
The revised arrangement provides Louisiana with earlier certainty and immediate access to funds tied to economic damages arising from the oil spill.
Jeff Landry said: “I want to thank bp for coming to the table. Unresolved issues, like these, hold Louisiana back. As Governor I have worked to responsibly and ethically, clean up the litigation environment that has impacted one of our largest employers – the oil and gas industry. This is just another step in fulfilling my promise.”
As part of the agreement, coastal zone lawsuits brought by parishes in Louisiana against bp related to the spill will be resolved, ending a number of legal disputes that have persisted since the incident.
The state’s authorities and bp said that the resolution resets their relationship and allows both parties to focus on future priorities.
In 2015, bp reached a wider settlement of up to $18.7bn covering federal, state and local government claims from the Deepwater Horizon accident, said to be the largest oil spill in marine drilling history.
Of that total, $4.9bn is designated to address economic and other claims made by five Gulf Coast states, with the Louisiana agreement representing more than 20% of the remaining payments under that settlement.
Meg O’Neill said: “We will never forget the 11 men who lost their lives, or the impact on their families, communities and the environment across the Gulf Coast. Deepwater Horizon was a tragedy that forever changed bp, and the lessons we learned continue to guide how we operate today.
“This agreement with Louisiana accelerates the delivery of our commitments and provides the state with access to these funds now. I would like to thank Governor Jeff Landry and Attorney General Liz Murrill for their leadership in reaching this agreement.”
bp has a considerable business presence in Louisiana, reporting $590m in vendor spending and over $280m in royalties and tax payments to the state in 2025.
The company is also a major producer and investor in the Gulf of America and, via bpx energy, holds interests in the Haynesville region.
The Deepwater Horizon disaster began on 20 April 2010, when the offshore oil rig exploded in the Macondo Prospect, resulting in 11 fatalities and substantial environmental damage.
Legal proceedings brought by the US and other parties have led to multiple settlements, including a $5.5bn Clean Water Act penalty and up to $8.8bn for natural resource damages.
