BP agrees to pay $19bn for causing America’s worst environmental disaster

BP has reached an $18.7bn settlement with the U.S. government and five states over the 2010 Deepwater Horizon oil disaster. The deal was announced as a federal judge was preparing to rule on how much the oil giant owed in Clean Water Act penalties after the explosion and fire, which left 11 workers dead and an estimated 473 million litres of oil in the Gulf of Mexico. Under the deal, BP Exploration and Production has been granted up to 18 years to pay the money. Its share price rose 4% when the news was released.

This is a realistic outcome which provides clarity and certainty for all parties.

Bob Dudley

The Gulf disaster destroyed the market value of BP - ground it is yet to recover. It claimed the job of-then chief executive Tony Hayward who contributed to the PR disaster facing the company at the time with a number of gaffes. Bob Dudley, who succeeded him, said: “For the United States and the Gulf in particular, this agreement will deliver a significant income stream over many years for further restoration of natural resources and for losses related to the spill. For BP, this agreement will resolve the largest liabilities remaining from the tragic accident and enable BP to focus on safely delivering the energy the world needs.”

This is a landmark settlement, It is designed to compensate the state for all the damages, both environmental and economic.

Gov Robert Bentley of Alabama

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