BP has announced a settlement with the majority of claimants following the 2010 Deepwater Horizon accident.
The agreement follows US lawyers pursuing a class action - multiple claims - against BP as a result of medical and economic damage caused by the explosion of the Deepwater Horizon rig in the Gulf of Mexico two years ago. The settlement, worth around $7.8bn, will be taken from the $20bn fund set up by the British-based company to cover the costs of the accident.
Cleaning up the Gulf coast after the Deepwater Horizon spill Image: US Coastguard |
The out-of-court deal covers the "substantial majority" of claims brought against the company, according to a BP statement and will be added to the $8.1bn already paid out by BP to individuals, businesses and government agencies, as well as some $14bn in operational response activities.
The claimants will be compensated depending on whether their claims are medical or economic. The latter will be paid on a "claim-made" basis, while medical claims will be handled on a sliding scale depending on the medical condition, as well as a 21-year medical consultation programme. Individual economic losses will also be supplemented with payments to the Gulf seafood industry and an advertising fund to promote regional tourism.
According to the statement, BP has decided to waive the protocol of waiting until the economic loss settlement has been finally approved and will start payment of these claims immediately. BP Group CEO, Bob Dudley, added: ""This settlement reflects our commitment not only to the Gulf region, but also to the United States as a whole. BP has operated in America for more than 100 years, employs nearly 23,000 people in the U.S., and invests more in the U.S. than in any other country."