BP says final cost of Deepwater Horizon disaster is $61.6bn

BP says final cost of Deepwater Horizon disaster is $61.6bn

BP announced on Thursday it believes the final pre-tax cost of its Deepwater Horizon spill will be $61.6bn or $44bn after tax.

The April 2010 disaster saw the BP-operated Deepwater Horizon drilling rig explode with the loss of 11 people’s lives at the Macondo Prospect in the US Gulf of Mexico.

That was followed by an almost three-month-long flow of crude into the waters of the Gulf before the well could be capped.

It is the worst offshore oil spill in US history and did damage to coastal economies plus wildlife and their habitat.

BP said it came to the final figure after including a $5.2bn pre-tax charge covering all outstanding business and economic loss claims and a securities settlement.

In October, BP agreed to pay $20bn to settle claims with the US government related to the spill.

Any subsequent costs related to the disaster will be negligible, the company said.

Since 2010, BP has sold off more than $45bn in assets to help cover the costs of the spill.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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