BP ‘may be near’ Deepwater settlement

Published on 16/07/2012 00:00

OIL giant BP was last night thought to be nearing a £7.4 billion settlement with US authorities as it seeks to draw a line under the Deepwater Horizon disaster.

The group hopes to unveil a deal with the US Department of Justice by September that would resolve all criminal and civil penalties, removing the spectre of a costly legal battle, according to reports.

It has already provided $37 billion (£23.8bn) to cover many of the costs following the disaster, which killed 11 workers in April 2010 and unleashed the biggest oil spill in American history.

This figure includes just $3.5bn to cover charges under the clean water act, which could rise to up to $17.5bn if BP is found grossly negligent.

It is thought BP is looking for a “grand settlement” of $15bn covering clean water act fines plus potential criminal charges and other damages. That would mean it has to find $11.5bn more.

The Obama administration is keen to use the settlement as a potential vote winner ahead of the presidential election.