BP faces further $2.5bn charge over Deepwater Horizon spill

Oil company has paid out more than $60bn in liabilities over environmental disaster that still threatens wildlife and ecology around Gulf of Mexico

BP is to take a further $2.5bn (£1.87bn) hit as a result of the Deepwater Horizon accident, bringing the total cost of the environmental disaster to almost $62bn.

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

BP said the charge is expected to include a pre-tax non-operating charge associated with the oil spill of about $5.2bn. This would bring the total cumulative pre-tax charge relating to the Deepwater Horizon incident to $61.6bn, or $44bn after tax.

The company said that any further outstanding claims related to the 2010 spill in the Gulf of Mexico left over “will not have a material impact on the Group’s financial performance”.

Brian Gilvary, BP chief financial officer, put a positive gloss on the latest charge resulting from the accident in which 11 workers died and almost 5m barrels of oil were spilled.

“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.”

BP reached the main agreements to settle outstanding federal, state and local government claims arising from Deepwater Horizon a year ago. In the months since, BP said it had made “much further progress” in resolving outstanding claims.


Terry Macalister

The GuardianTramp

Related Content

Article image
BP to pay $175m to investors over Deepwater Horizon spill
Settlement compensates investors who claimed BP publicly underplayed amount of oil flowing from Macondo well into Gulf of Mexico

Rob Davies

03, Jun, 2016 @10:14 AM

Article image
Deepwater Horizon: jury selection begins for BP exec charged in oil spill
David Rainey accused of obstructing congressional investigation as prosecutors say he misled officials about quantity of oil entering Gulf of Mexico

Dominic Rushe in New York

01, Jun, 2015 @4:16 PM

Article image
Deepwater Horizon review – Mark Wahlberg v BP in angry disaster movie
The actor is a believable everyman engineer in a harrowing, courageous account of the 2010 oil rig tragedy – and the corporate greed that caused it

Benjamin Lee

14, Sep, 2016 @12:30 AM

Article image
The 'well from hell' – my fight with BP to film Deepwater Horizon
The 2010 explosion in the Gulf of Mexico triggered an environmental catastrophe and resulted in unbelievable human heroism – so it was a natural fit for Hollywood. But what do you do when your film leads you into conflict with a corporate oil giant? The film’s director, Peter Berg, explains

Peter Berg

04, Oct, 2016 @3:07 PM

Article image
'Of course it could happen again': experts say little has changed since Deepwater Horizon
The danger of deepwater oil operations, combined with the loosening of Obama-era rules, mean the risk of a repeat disaster is high

Emily Holden in Washington

20, Apr, 2020 @8:54 PM

Article image
Deepwater oil spill: BP steps up PR effort to insist all is well in the Gulf
Oil giant says area is making a rapid recovery but evidence mounts that wildlife is still struggling to rebound, five years after Deepwater Horizon spill

Peter Moskowitz in New Orleans

31, Mar, 2015 @11:48 AM

Article image
Five years after the Deepwater Horizon oil spill, we are closer than ever to catastrophe
Important changes have been made since 2010, but the oil and gas industry has not learned from the historic oil spill in the Gulf of Mexico

András Tilcsik and Chris Clearfield

17, Apr, 2015 @8:53 AM

Article image
Lord Browne, the Sun King of oil, returns to Gulf of Mexico

Lord Browne's Riverstone buys 2m acres of oil and gas fields worth $3.75bn from Apache Corporation in Houston, Texas

Terry Macalister

19, Jul, 2013 @6:37 PM

Article image
Arctic oil rush will ruin ecosystem, warns Lloyd's of London

Insurance market joins environmentalists in highlighting risks of drilling in fragile region as $100bn investment is predicted

Julia Kollewe and Terry Macalister

11, Apr, 2012 @11:03 PM

Article image
BP gets go-ahead to expand North Sea drilling
Cameron backs £4bn plan for 'new Atlantic frontier' but Greenpeace warns of oil spills and rising emissions

Richard Wachman

13, Oct, 2011 @6:41 PM