BP in $7.8-bn deal to settle part of Gulf of Mexico oil spill claims

BP Plc has reached a $7.8-billion deal with the group of aggrieved parties suing it over the massive 2010 Gulf of Mexico oil spill, while it is yet to settle claims by the US government, Gulf states and its drilling partners.

BP said the settlement with the plaintiffs' steering committee (PSC) is subject to final written agreement to resolve the substantial majority of legitimate economic loss and medical claims stemming from the Deepwater Horizon accident and oil spill.

The PSC acts on behalf of individual and business plaintiffs in the multi-district litigation (MDL) proceedings pending in New Orleans.

"The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast," said Bob Dudley, BP Group CEO.

BP estimates that the cost of the proposed settlement, expected to be paid from the $20 billion trust it set up to provide immediate relief to those whose livlihoods were affected, would be approximately $7.8 billion. This includes a BP commitment of $2.3 billion to help resolve economic loss claims related to the Gulf seafood industry.

BP has already spent more than $22 billion toward meeting its commitments in the Gulf, including $8.1 billion to individuals, businesses and government entities. In addition, BP has spent approximately $14 billion on operational response.