BP slashes $23m off Louisiana payout in Deepwater Horizon deal
UK oil giant BP will pay $350m upfront to settle remaining economic claims from the 2010 Gulf of Mexico disaster.
BP will pay Louisiana $350 million in a single payment to settle remaining claims tied to the 2010 Deepwater Horizon disaster, replacing $373 million in interest-free installments originally scheduled over the next seven years. The agreement, signed by BP CEO Meg O’Neill, Louisiana Governor Jeff Landry, and Attorney General Liz Murrill, also resolves coastal-damage lawsuits brought by local parishes against the company.
The deal allows Louisiana to access the full amount upfront, rather than waiting for annual payments. The original $373 million was part of a broader $20.8 billion settlement BP reached in 2015 with the U.S. government and five Gulf Coast states, which a federal court approved in 2016. That agreement included $4.9 billion for Louisiana, Alabama, Florida, Mississippi, and Texas, spread over 18 years.
Immediate funds for Louisiana: Deepwater Horizon
Governor Landry called the settlement a step toward ending prolonged litigation that has affected the state’s oil and gas industry. “We have now settled with all but one of the major defendants in these coastal cases,” he said.
BP’s O’Neill stated the agreement “accelerates the delivery of our commitments and provides the state with access to these funds now.”
Disaster’s lasting impact
The Deepwater Horizon explosion on April 20, 2010, killed 11 workers and caused the largest offshore oil spill in U.S. history. The Transocean-owned rig, operating on BP’s Macondo well in the Gulf of Mexico, sank two days later, releasing oil for 87 days before the well was capped.
Federal agencies estimated the spill at between 3.19 million and 4 million barrels of oil. The disaster led to years of legal battles, with Louisiana seeking compensation for economic and environmental damage to its coastal wetlands.
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