BP has reached an agreement with the US Department of Justice to pay $18.7bn for the oil spill in the Gulf of Mexico in 2010. The environmental disaster was a result of the explosion at the Deepwater Horizon Oil rig in 2010 resulting in over 125 million gallons of oil being ejected into the Gulf of Mexico.
The payout is the biggest one ever by a single company in US history. Earlier the US court had rejected the oil major’s legal challenge over an earlier agreed compensation deal in 2012.
The cost incurred by BP has already exceeded $43 billion associated with the oil spill.
According to US Attorney General Lorretta E Lynch, “ If approved by the court, this settlement will be the largest settlement with single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come”.
Bob Dudley, BP’s Chief Executive in a statement called the settlement, “ a clarity for realistic outcome which provides clarity and certainty for all parties”.