British Petroleum PLC (BP) has agreed to pay $7.8 billion to cover most of the economic loss, property damage and medical claims for the largest oil spill in American history.
The London-based company’s action would, if approved by a federal judge in New Orleans, La., settle claims by the Plaintiff’s Steering Committee (PSC) representing private plaintiffs in the civil litigation.
“This settlement demonstrates BP’s continued progress in resolving significant issues related to the Deepwater Horizon accident,” said BP Group Chief Executive, Bob Dudley in a statement. “BP made a commitment to help economic and environmental restoration efforts in the Gulf Coast, and this settlement provides the framework for us to continue delivering on that promise, offering those affected full and fair compensation, without waiting for the outcome of a lengthy trial process.”
The settlement, filed April 18, came near the second anniversary of the April 20, 2010 disaster when an explosion rocked the Deepwater Horizon drilling platform, killed 11 workers, blew out the Macondo well and triggered the biggest oil spill in history in the Gulf of Mexico.
For three months the blown out well discharged oil, with millions of barrels contaminating the gulf.
According to CNN, scientists estimated the ruptured well released more than 20,000 barrels of oil a day.
There is no cap to how much the company could eventually pay, though a $20 billion trust fund was set aside in 2010 to deal with costs specifically related to the oil spill.
BP still faces litigation brought by federal agencies and states that border the gulf.
According to the Oil and Gas Journal, BP has already paid over $8.1 billion in damages to companies, individual persons, and government agencies. The company has also spent $22 billion in efforts to repair damage to the gulf. CNN said the seafood industry in the Gulf has already received a promise of $2.3 billion.
