BP sets aside more oil payout cash

BP sets aside more oil payout cash

BP has set aside an extra $1.4bn (€1.05bn) in compensation for the Deepwater Horizon disaster as it struggles to stem a tide of allegedly spurious claims which it says are inflating its payout bill.

The amount estimated by the company that it needs to compensate individuals and businesses has been increased from $8.2bn to $9.6bn. It was previously $7.8bn.

It means that just $300m is left of a $20bn trust fund set up by the company to settle its legal obligations following the disaster.

BP said it continued to dispute a court interpretation of the US settlement agreement it signed following the 2010 disaster in the Gulf of Mexico – which it has argued allows businesses to claim for non-existent losses.

Its total estimated bill following the disaster now stands at $42.4bn, which also includes clean-up costs and fines.

Costs are being paid out of the $20bn trust fund set up following the catastrophe, but the latest figures show $19.7bn of this have now been used up.

It means BP is likely to face questions over where it will find any more cash should the compensation bill continue to rise.

The company disclosed the new figure as it published financial results for the second quarter of the year, which showed profits down sharply to $2.7bn.

The 25% decline compared with the same period last year was blamed on lower oil prices and a higher tax bill.

More in this Section

Ireland faces second mortgage arrears crisis when payment breaks end this autumn, leading financial advisers warnIreland faces second mortgage arrears crisis when payment breaks end this autumn, leading financial advisers warn

EU's Michel proposes €5bn Brexit emergency fund that may help IrelandEU's Michel proposes €5bn Brexit emergency fund that may help Ireland

Pressure builds on Donohoe after UK cut Vat to boost pubs and restaurants in Covid-19 stormPressure builds on Donohoe after UK cut Vat to boost pubs and restaurants in Covid-19 storm

Britain heads for sharpest economic slump of major economies in Covid-19 stormBritain heads for sharpest economic slump of major economies in Covid-19 storm


Lifestyle

Naomi Campbell model tells Michael Odell why she’s inspired by Black Lives Matter and the young people taking action against racial injusticeModel behaviour - Naomi Campbell at 50

Eve Kelliher explores temples of Zoom to get verdict on relocation from boardroom to spare roomWhat we've learned from world's biggest remote working experiment

As those of us who love to have friends round are tentatively sending out invitations, we’re also trying to find a workable balance with necessary social distancing rules, writes Carol O’CallaghanTable manners: How to entertain at home post-lockdown

Helen O’Callaghan says asthma sufferers need to watch pollen levelsBreathe easy: Pollen tracker protects asthma sufferers

More From The Irish Examiner