BP has signed a $350 million agreement with the state of Louisiana to settle economic damages resulting from the Deepwater Horizon disaster in 2010. This agreement means the settlement of remaining claims related to coastal damages as well.
Details of the Agreement
Under this agreement, BP will make a one-time payment of $350 million instead of interest-free installment payments totaling $373 million that were to be made over the next seven years. This agreement was signed by Meg O'Neill, CEO of BP, Jeff Landry, Governor of Louisiana, and Liz Murrill, Attorney General of the state.
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This agreement is part of the efforts by Louisiana state officials to resolve long-standing claims related to oil and gas companies for compensating damages to the state's coastal wetlands. Landry announced that the state has reached agreements with all major defendants in these cases, except for one.
Historical Background of the Deepwater Horizon Disaster
The Deepwater Horizon disaster occurred on April 20, 2010, when an explosion on the Transocean drilling rig working on BP's Macondo well in the Gulf of Mexico killed 11 workers. The rig sank two days later, leading to an oil spill that lasted for 87 days until the well was capped.
Reports indicate that approximately 3.19 million barrels of oil entered the Gulf of Mexico, making it the largest oil spill in U.S. history. In 2015, BP signed a $20.8 billion agreement with the U.S. government and five other Gulf Coast states, which was approved by a federal court in April 2016. This agreement included a payment of $4.9 billion to the five states over 18 years.
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