BP to pay $18.7bn over Gulf of Mexico oil spill
London
British energy giant BP said today it had agreed to pay a record $18.7 billion (16.9 billion euros) to compensate the US government and five states for damages stemming from the deadly 2010 Gulf of Mexico oil spill.
The spill was sparked by an explosion on the Deepwater Horizon rig, which killed 11 men. Millions of barrels of oil flowed into Gulf waters, in one of the worst environmental disasters to strike the United States.
It took 87 days to cap BP's runaway well -- some 5,000 feet (1,500 meters) below sea level off the coast of Louisiana.
Beaches were blackened in five states and the region's tourism and fishing industries were crippled in a tragedy that riveted the nation.
BP's share price closed up four percent at 437.40 pence following the announcement, which was welcomed by the US government. Attorney General Loretta Lynch said it would take several months to finalize the deal.
"The board has balanced the risks, timing and consequences associated with many years of litigation against its wish for the company to be able to set a clear course for the future," said BP chairman Carl-Henric Svanberg.
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