BP Plc has reached a comprehensive 18.7 billion dollars settlement with the U.S. government and five states, a landmark deal that effectively ends years of litigation over environmental damage and human casualties caused by the 2010 Gulf of Mexico spill.
It could be the largest settlement with a single entity in U.S. history, the U.S. Justice Department said, according to Reuters. The April 20, 2010, rig explosion killed 11 workers and spewed millions of barrels of oil for nearly three months onto the shorelines of several states.
The agreement covers U.S. Clean Water Act fines and natural resources damages, along with claims by Alabama, Florida, Louisiana, Mississippi, Texas and 400 local government entities.
BP’s London-listed shares rose as much as 5.3 percent as the extent of the company’s liabilities became clear for investors, even as it increased its cumulative pretax charge for the disaster by about $10 billion. BP’s New York-traded shares rose 5 percent to $41.20.
“This is a realistic outcome which provides clarity and certainty for all parties,” BP Chief Executive Officer Bob Dudley said in a statement. “For BP, this agreement will resolve the largest liabilities remaining from the tragic accident.”
