Judge approves record $20bn BP settlement for Gulf of Mexico oil spill

A federal judge has granted final approval to an estimated $20bn (€17.6bn/£14bn) settlement over the 2010 BP oil spill in the Gulf of Mexico. The settlement, first announced in July, includes $5.5bn in civil Clean Water Act penalties and billions more to cover environmental damage and other claims by the five Gulf states. The U.S. Justice Department has estimated that the settlement will cost BP up to $20.8bn - the largest environmental settlement in U.S. history. U.S. District Judge Carl Barbier had earlier ruled that BP had been “grossly negligent” in the Deepwater Horizon rig explosion which killed 11 workers and caused a 134 million gallon oil spill.

Today’s actions holds BP accountable with the largest environmental penalty of all time while launching one of the most extensive restoration efforts ever undertaken.

U.S. Attorney General Loretta Lynch

In 2012, BP reached a similar settlement with lawyers for businesses and residents who claimed the spill cost them money. That deal, which does not have an upper limit, led to a long court battle over payouts to businesses, with a claims administrator still processing many cases. BP has estimated the costs related to the spill - including cleanup work, settlements and criminal and civil penalties - will be more than $53bn (€46.7bn/£37bn). The money will be paid out over the next 16 years.

BP