Following the Deepwater Horizon accident, BP committed to help restore the Gulf region’s environment and economy and to keep the public informed about our progress. In the six years following the accident, we worked with the people of the Gulf to minimize the effects of the spill and deliver against these commitments.
On April 4, 2016, a federal court in New Orleans approved the historic $18.7 billion settlement resolving all litigation with the federal government and the five Gulf states over their economic and environmental claims related to the Deepwater Horizon spill.
On July 14, BP announced that it can now reliably estimate all of its remaining material liabilities in connection with the incident. To date, BP has provisioned over $61 billion relating to the spill, including response, cleanup, economic claims, government payments, settlements and restoration.
Following the Deepwater Horizon accident, BP worked with the people of the Gulf to minimize the effects of the spill and deliver on its commitments to help restore the Gulf’s environment. BP spent $14 billion on response and cleanup activities, voluntarily committed up to $1 billion for early restoration of natural resources ($762 million of which had been paid for projects by the end of 2015), and spent $1.3 billion on the Natural Resource Damage Assessment (NRDA) process. Immediately after the accident, BP also committed $500 million over 10 years to support independent research through the Gulf of Mexico Research Initiative (GoMRI).
In addition, the settlement approved in April 2016 includes $7.1 billion payable by BPXP to the United States and the five Gulf states over 15 years for natural resource damages. BPXP has also set aside an additional amount of $232 million to be added to the NRD interest payment at the end of the payment period to cover any further natural resource damages that are unknown at the time of the agreement.
Following the Deepwater Horizon accident, BP committed to restoring the Gulf region’s economy and began paying claims within weeks of the accident. BP paid $6.67 billion through the Gulf Coast Claims Facility (GCCF) and has made significant progress in resolving remaining economic loss and property damage claims from individuals and businesses under the 2012 settlement with the Plaintiffs Steering Committee (PSC). Additionally, the vast majority of opt-out and excluded economic loss claims have also been settled or dismissed.
Also, the settlement approved in April 2016 includes a total of $4.9 billion to be paid over 18 years to settle economic and other claims made by the five Gulf Coast states, and up to $1 billion to resolve claims made by more than 400 local government entities. BP has accepted releases received from the vast majority of local government entities, and payments required under those releases were made during the third quarter of 2015.