U.S. plans to offer $16B settlement to BP over Gulf of Mexico oil spill

Washington, DC, United States (4E) – U.S. authorities are reportedly planning to make a $16bn settlement offer to British energy firm BP for civil claims linked to the 2010 Gulf of Mexico oil spill accident.

A Wall Street Journal report on Friday said that the amount would cover fines that BP has to pay under the Clean Water Act and a federal water pollution law, and payment for an environmental evaluation by the Natural Resources Damage Assessment.

The report, however, stated that it is not clear whether there has already been a formal offer by the government to BP.

The April 2010 explosion on the BP-operated Deepwater Horizon oil rig resulted to the death of 11 people and spilling of millions of gallons of crude oil into the Gulf of Mexico. It took four months for BP to cap the leakage.

Last week, BP said that it will defend itself in court against excessive fines. The energy giant had pleaded guilty to criminal charges in November and had agreed to pay $4.5bn in criminal fines.

It had also agreed to make a $7.8bn settlement last year to cover private claims for property damage, economic loss and medical costs.

Overall, BP has paid out $10bn to individuals, businesses and local governments affected by the spill. The company has also spent more than $14bn for the response and cleanup measures.

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