Deepwater Horizon disaster update
BP’s Bob Dudley has revealed that the $20 billion (£13bn) or so trust fund set up to pay damages to businesses and individuals affected by the oil spill has just $305 million or £197 million left. Though BP has set aside a further $1.4 billion (£919mn) aside for extra claims after the trust fund dries up it feels this will not be enough as the deadline for compensation does not expire till April 2014.
The flood of legal claims from companies in the gulf of mexico disaster zone is starting to bite into BP margins. Including clean up costs, fines and payouts BP’s estimated cost is put at around circa $42 billion (£27bn).
More than $1bn has been awarded for what BP says are “fictitious” claims.
No company would agree to a settlement that pays businesses that suffered no losses,’ said chief executive Bob Dudley.
‘We want everyone to know that we are digging in and are well-prepared for the long haul on legal matters.’