The US Justice Department and five Gulf states have announced a final settlement of $20.8bn with BP over the disastrous Gulf of Mexico oil spill in 2010.
Civil claims have been filed by each of the Gulf States Alabama, Florida, Louisiana, Mississippi and Texas against BP, following the spill.
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The latest settlement resolves a lawsuit filed by attorney general Eric Holder on 15 December 2010 against BP and several co-defendants, seeking to hold them accountable for the Deepwater Horizon disaster.
Attorney General Loretta Lynch said: "Building on prior actions against BP and its subsidiaries by the Department of Justice, this historic resolution is a strong and fitting response to the worst environmental disaster in American history.
"BP is receiving the punishment it deserves, while also providing critical compensation for the injuries it caused to the environment and the economy of the Gulf region."
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Secretary of Commerce Penny Pritzker said: "Five years after one of the worst environmental disasters in our nation’s history, which claimed 11 lives and caused untold damage, we have reached a historic milestone with today’s settlement.
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By GlobalData"With this settlement, federal, state and local governments and the Gulf coast communities will have the resources to make significant progress toward restoring ecosystems, economies, and businesses of the region."
The incident took place on 10 April 2010 when the Macondo well suffered a catastrophic blowout and destroyed the Deepwater Horizon drilling rig.
The explosion also led to a release of around three million barrels of oil into the Gulf of Mexico for nearly three months.
Under the consent decree, BP will have to pay $5.5bn federal Clean Water Act penalty, $8.1bn in natural resource damages, and $600m for other claims.
BP has also agreed to pay $4.9bn to the Gulf states and up to a total of $1bn to several hundred local governmental bodies to settle claims.
In July, the company agreed to pay $18.7bn to settle the claims.
Image: Oil from the Deepwater Horizon oil spill approaches the coast of Mobile, Alabama on 6 May 2010. Photo: courtesy of petty officer 1st class Michael B Watkins.
