Monday 20 April 2015

BP oil spill compensation increased by $5 billion

An announcement was made by Patrick Juneau that $5 billion had been paid out so far to the affected people and businesses of the 2010 BP oil spill in the Gulf of Mexico.

Mr. Patrick Juneau, BP plc administrator said, UK oil giant had paid out more than $5 billion in reimbursement claims to the victim of the biggest oil spill that happened in Gulf of Mexico.

An outburst on the Deep water Horizon penetrating rig, in Macondo near Gulf of Mexico, took the lives of eleven rig workers and spilled almost 4.9 million barrels of crude oil more than three months during the year 2010.

Mr. Juneau said in a statement issued on his website that that almost 62,162 people who claimed on the company had received $5.037 billion up till now as according to the part of the compensation agreement which was signed in 2012. The agreement stated that the company was required to pay around $7.8 billion in order to meet the claims arising due to the oil spill disaster.

However, later, the UK based oil major company said that it was not able to provide an exact calculation of the total cost of agreement. Earlier in February, BP said its forecast of the total settlement cost had extended to $9.9 billion.

The oil company has criticized that Mr. Juneau was not able to understand the   requirements of the deals and had paid the businesses that were not affected by the oil spill. However, the argument by the company was not accepted by the courts. Although, the company is no longer trying to dismiss him from his current position as he had made significant efforts to overcome fraud in the company.

As per the company, it has already spent approximately $28 billion in payments to the claimants that includes the early restoration work, the cleanup and response of the oil spill disaster.

In the meantime, BP is waiting for the Federal Court decision on the amount of penalty the company has to pay for breaking the Clean Water Act. On 20th April it will be fifth year of oil disaster.

It has been Five years since the oil spill incident took place in Gulf of Mexico. The incident resulted in more than 3 billion barrel of oil spill into the marine for almost three months.  Over 5 years has passed by, while the accurate cost of damages has still not been determined by anyone.

Earlier in January, it was estimated that the District Judge Carl Barbier can fine the oil company up to $13.7 billion.

BP plc. Stock closed at $42.55 after increasing by 0.31% on April 16.

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