BP and plaintiffs nearing $14bn deal

BP Plc and lawyers for businesses and individuals suing over the 2010 Gulf of Mexico oil spill are near a $14bn (€10.64bn) accord to be funded with money set aside for out-of-court settlements, according to people familiar with the talks.

BP would close its $20bn Gulf Coast Claims Facility and shift the remaining $14bn to plaintiffs hurt by the disaster, the largest offshore spill in US history, the sources said. Such a deal would not include fines by the federal government that could reach $17.6bn, lawsuits by state governments or claims between BP and partner companies involved in the disaster. BP shares rose almost 2% on news of the potential deal to their highest in more than a year.

The Apr 2010 Macondo well blowout destroyed the Deepwater Horizon rig, killed 11 workers and sent more than 4 million barrels of oil spewing into the Gulf over three months. It spawned hundreds of suits against London-based BP; Vernier, Switzerland-based Transocean Ltd, owner and operator of the doomed rig; and Houston-based Halliburton Co, provider of cementing services at the site.