BP will pay 20.8 billion USD compensation for oil spill in Gulf of Mexico

Deepwater Horizon oil spillThe oil giant BP will pay 20.8 billion USD compensation for oil spill in Gulf of Mexico. The settlement out of court was reached in July last year, but now was confirmed by the federal court in New Orleans. Only for the violation of the Law for water purity the British company will pay 5.5 billion USD. The British oil giant will pay during 16 years compensation to five US states in total amount of 20.8 billion USD. BP estimated the costs for the liquidation of the accident, its consequences, litigation and compensation to more than 53 billion USD.

In December last year the US Supreme Court confirmed without amendment the previous decision of the courts in the country that BP has primary responsibility for the oil spill in the Gulf of Mexico in 2010. The highest court of the country rejected all claims of the company, which insisted that the Federal Court in New Orleans (Louisiana) misinterpreted the settlement agreement and actually ordered the company to compensate for inflation even small claims applicants. BP, in particular, wanted the court to examine carefully whether all the applicants is found that the losses claimed by them were caused by the accident of 2010, rather than some other reasons.

However, the court in New Orleans ruled in mid-November that in settlement out of court with BP was not mentioned that the applicants must prove they have suffered directly because of the incident. They just have to provide evidence that their incomes have declined within three to eight months after the incident.

In April 2010 the platform Deepwater Horizon, operated by BP in Gulf of Mexico suffered fire and explosion, which killed 11 people. The ongoing leak of oil from the well was suspended three months later and, according to local authorities in the waters of the Gulf of Mexico have fallen 4.9 million barrels of crude oil. The accident was the biggest environmental disaster in US history. The disaster seriously harm the fishing and lead to changes in the rules for security and emergency operations.

About the Author

Svilen Petrov
My name is Svilen Petrov and I’m founder and chief editor at Business News Feeds. Business News Feeds is independent journal, which will daily provide you the most interesting and actual news for companies, employment and management.

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