Image courtesy of Petty Officer 2nd Class Justin Stumberg/U.S. Navy/Wikimedia Commons.

BP will face an additional charge of $5.2 billion charge as a result of the Deepwater Horizon accident, according to the Guardian.

This brings the total costs stemming from the environmental disaster to almost $62 billion for the company.

This charge is not a new fine, as the Guardian previously reported.

The additional charges relate to extra costs under its existing 2012 settlement to compensate business and individuals that suffered losses as a result of the oil spill in the Gulf of Mexico.

It also covers further payments for about 85,000 claimants who sought damages but were not covered by that deal.

This latest after-tax non-operating charge will be taken in the company’s second quarter financial results, which are due to be formally announced on July 26.

Any further outstanding claims related to the 2010 spill “will not have a material impact on the Group’s financial performance,” according to the company.

Brian Gilvary, BP chief financial officer said, “Over the past few months we’ve made significant progress resolving outstanding Deepwater Horizon claims and today we can estimate all the material liabilities remaining from the incident. Importantly, we have a clear plan for managing these costs and it provides our investors with certainty going forward.”


Leave a Reply