By Ed Ballard
LONDON-- BP PLC on Thursday said it agreed to pay $18.7 billion
over 18 years to settle all federal and state claims arising from
the Deepwater Horizon oil spill, ending a significant portion of
litigation still outstanding from the deadly accident five years
ago.
BP said the agreement involved the states of Alabama, Louisiana,
Florida, Mississippi and Texas as well as claims made by 400 local
government entities. As part of the deal, BP agreed to pay a civil
penalty of $5.5 billion under the U.S. Clean Water Act, payable
over 15 years. It also agreed to pay $7.1 billion to the U.S. and
five Gulf states over 15 years, and $4.9 billion to be paid over 18
years to settle economic and other claims made by the five Gulf
states.
Shares in BP climbed 4% after the announcement, gaining 20 pence
to trade at 439 pence in early afternoon trading in London.
"Five years ago we committed to restore the Gulf economy and
environment and we have worked ever since to deliver on that
promise," BP Chairman Carl-Henric Svanberg said.
"We have made significant progress, and with this agreement we
provide a path to closure for BP and the Gulf. It resolves the
company's largest remaining legal exposures, provides clarity on
costs and creates certainty of payment for all parties involved,"
he added.
Write to Ed Ballard at ed.ballard@wsj.com
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