BP Says It Reached $7.8 Billion Deal On Suit Over 2010 Gulf Oil Spill

BP and a committee representing 100,000 fishermen, sickened cleanup workers and others suing over the 2010 Gulf oil spill have reached an estimated $7.8 billion agreement to settle the lawsuit, company officials said late Friday.

Federal Judge Carl Barbier, who also announced the settlement pact but did not provide details, said that as a result of the deal, the trial scheduled to begin Monday has been postponed for a second time.

No new date was immediately set.

The agreement will be filed with the court for approval, Barbier said.

The settlement will likely result in a realignment of the parties in this litigation and require substantial changes to the current trial plan, he said. He didn't elaborate, and there was no mention in his order of anything about the status of BP's talks with the federal government and other parties.

Bob Dudley, BP Group CEO, said in a statement obtained by NBC News that the oil company worked for two years to meet its obligations to the Gulf Coast region.

"The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast," Dudley said.

BP said it estimated that the cost of the proposed settlement, expected to be paid from a $20 billion trust set up after the spill, would be approximately $7.8 billion. This includes a BP commitment of $2.3 billion to help resolve economic loss claims related to the Gulf seafood industry.

Before the proposed settlement, BP said, the company spent more than $22 billion, including paying out more than $8.1 billion to individuals, businesses and government entities and $14 billion on "operational response."

The proposed settlement does not include claims against BP made by the U.S. Department of Justice or other federal agencies, including those under the Clean Water Act and for Natural Resource Damages under the Oil Pollution Act, or by state and local governments, BP said.

The Deepwater Horizon rig exploded in the Gulf of Mexico off Louisiana in April 2010, killing 11 workers and spewing more than 200 million gallons of oil from an undersea well owned by BP. The spill soiling sensitive tidal estuaries and beaches, killing wildlife and shutting vast areas of the Gulf to commercial fishing.

The main targets of litigation resulting from the explosion and spill were BP, Transocean, Halliburton and Cameron International, maker of the well's failed blowout preventer. BP, the majority owner of the well that blew out, was leasing the rig from Transocean.

BP reported 2011 profits of $40 billion, $7.7 billion alone in the last quarter. It recently raised its dividend to shareholders by 14 percent. BP recently said it has 5 deep water rigs operating in the Gulf of Mexico and expects to be operating an additional three by the end of 2012.

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  • by Repub fingerprints all over this on Mar 3, 2012 at 10:07 AM
    Looks like the American Public are the ones being taken to the cleaners by these guys, and at the same time, giving them subsidies? Any politician supporting these leeches should be charged with with Treason.
    • reply
      by Obama Snake Oil Co on Mar 3, 2012 at 12:45 PM in reply to Repub fingerprints all over this
      When you use the litterbox, make sure you scuff your rear paws and cover it up...yeah...Those democratic leeches let the oil hit the beach so you could pay 5 bucks a gallon libterd...where have you been? You carbon footprint is less now since you don't drive as much. I hope you breathe better with 5 bucks coming after paying over 3 bucks a gallon for the past 3 years. Idiots...they just post...amazing..they drive cars and post too. Really...
      • reply
        by FYI on Mar 3, 2012 at 04:18 PM in reply to Obama Snake Oil Co
        Every time a Republicans say something about high gas prices.....hit him dead in the mouth.
  • by Barlow Location: Winterville on Mar 3, 2012 at 09:44 AM
    I'm sure BP got off cheap. And that oil that the Bush administration said would be used to pay for the war in Iraq? BP and Shell have those contracts. Howz that payback coming? Not so good, huh?
    • reply
      by Obama Snake Oil Co on Mar 3, 2012 at 12:47 PM in reply to Barlow
      There is no way you can be that much of an idiot and still use a computer...how were you able to actually use a keyboard or even think. Give you car keys to your mom and go back to your xbot.....geez...no one can post that BS and still keep a straight face...
      • reply
        by Just Facts on Mar 3, 2012 at 04:19 PM in reply to Obama Snake Oil Co
        You do it all the time, your the biggest liar on the site. FACT.
      • reply
        by Barlow on Mar 3, 2012 at 06:43 PM in reply to Obama Snake Oil Co
        Iraq Opening to BP, Exxon Mobil, Shell for First Time Since 1972 By Anthony DiPaola and Daniel Williams - March 3, 2010 17:01 EST A group led by BP, which vies with Shell as Europe’s largest oil company, will receive $2 billion per year in fees to develop the Rumaila field. A Shell-led group will get $913 million and a group led by Exxon, the largest U.S. oil company, will receive $1.6 billion per year. Each calculation is based on the agreed-to per-barrel fee times the maximum production level. “We see this as the beginning of a long-term relationship with Iraq and will continue to look for further opportunities,” Andy Inglis, BP’s chief executive for exploration and production, said on a conference call March 2.
  • by Shine Location: NE NC on Mar 3, 2012 at 09:19 AM
    It would be interesting if we could find out and really there is not a way - bet they pay the money and most of it is recirculated back to B.P.
  • by Anonymous on Mar 3, 2012 at 08:18 AM
    And the lawyers will get most of that money, with very little going to the people that were actually hurt.
  • by 11 Americans Died on Mar 3, 2012 at 07:41 AM
    How does this company compensate for the loss of lives, health and well being of the people in the Gulf? Not to mention, the loss of wildlife, the pets that were in shelters that lost their lives because people could no longer afford to feed and care for them. The loss of a healthy ocean that may never recover...How can they put such a low low figure on this loss? This is "chump" change for them..How much did we, the tax payers subsidize this company? This figure is, to me, way too low to compensate these victims for their losses..
  • by We got scammed on Mar 3, 2012 at 06:59 AM
    Well,we payed out for B-P, tax money and conservatives don't have a problem with there profits, but we bail-out G.M. an American Corporation and all we hear is "they should have gone bankrupt, the unions and their suppliers too". Another thing I am pretty sure B.P. has insurance to cover this as it was an accident and would not have to be paid by themselves.........something to think about.
  • by Anonymous on Mar 3, 2012 at 06:53 AM
    We still give these Blood suckers Billions and Billions in subsidies and Tax Breaks, yet the Republicans are the first to defend them. I wonder why? Please...come up with an alternate fuel source.
  • by Wharf Rat Location: OIB on Mar 3, 2012 at 04:47 AM
    Well, now we know the real reason gas is steadily going up.
    • reply
      by You really are a Rat on Mar 3, 2012 at 07:11 AM in reply to Wharf Rat
      So, are you suggesting we should just bow down to the Oil Companies and the Taxpayers should pay for a clean-up that BP was negligent for? I don't know about you, but I don't own an oil company.
    • reply
      by Shameful display of greed on Mar 3, 2012 at 07:42 AM in reply to Wharf Rat
      Unbelievable! $22 BILLION and counting and they are still able to operate business. Gives you an idea of just how much money these greedy corporations have.
  • by GOP wanted the US to pay on Mar 3, 2012 at 03:17 AM
    Texas GOP Rep. Joe Barton set a new standard in stupid by apologizing to BP for President Obama's "shakedown" of the company. Furious GOP leaders scrambled to cap a gusher of outrage ranks over Barton's misplaced mea culpa. By late afternoon, they made him eat his words. Even the recipient of the apology, BP chief executive Tony Hayward, wanted no part of it, though the uproar diverted some attention from his own rough ride in the witness chair. Another Anti-Obama Idiot!

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