BP settles US oil spill with $7.8 bn

The company said on Friday that the settlement will be paid out of a USD 20 billion trust set up more than 100,000 fishermen and cleanup workers of the worst offshore oil spill in American history.

“The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast, ” Bob Dudley, the BP chief executive said.

As a result of the settlement the US District Judge Carl Barbier in New Orleans on Friday ordered the adjournment of a trial scheduled to start on March 5 for the second time.

The Deepwater Horizon rig exploded in the Gulf of Mexico off Louisiana in April 2010, killing 11 workers and spewing more than 200 million gallons of oil from an undersea well owned by BP. The oil leak is described as the worst environmental disaster in US history.

However, the settlement does not include the biggest plaintiff in the BP case, the United States government. Nor does it include the state and local governments along the coast, which are also suing.

The deal between BP and more than 120,000 victims of the spill – from shrimp boat captains to sales teams at time-share condos, restaurateurs and wedding planners – settles what is belived to be one of the largest class-action suits ever.

PG/JR

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