BP puts spill costs at €40bn

EMBATTLED BP is understood to be working on plans to raise $50 billion (€40bn) to cover the cost of the Gulf of Mexico oil spill – more than double the amount previously thought.

Directors at the oil group are said to have approved a scheme last week to raise the money in a bid to ensure they have enough reserves to cover any claims as a result of the disaster, according to the Sunday Times newspaper.

The figure is more than double the $20 billion (€16bn) that the group has already agreed to pay into a compensation fund for those affected by the spill, although analysts have warned that the final cost of the disaster could be as much as $100bn (€81bn).