BP Provides $7.8B Financial Relief for 2010 Gulf Spill Damage

BP (NYSE:BP): BP announced last night that it has reached a settlement with the Plaintiffs’ Steering Committee to resolve the substantial majority of economic loss and medical claims stemming from the Deepwater Horizon accident and oil spill. The PSC acts on behalf of individual and business plaintiffs in the Multi-District Litigation proceedings pending in New Orleans. BP estimates that the cost of the proposed settlement, expected to be paid from the $20B Trust, would be approximately $7.8B. This includes a BP commitment of $2.3B to help resolve economic loss claims related to the Gulf seafood industry. Prior to the proposed settlement, BP said it had spent more than $22B toward meeting its commitments in the Gulf. The proposed settlement is not expected to result in any increase in the $37.2B charge previously recorded in BP’s financial statements.

Oil rose above $110 per barrel Thursday after an Iranian news outlet reported that a pipeline in Saudi Arabia had exploded, Bloomberg reported yesterday. Oil subsequently dropped below $109 per barrel after a Saudi government spokesman said that no acts of sabotage had taken place, the news service added.

Meanwhile, Chevron (NYSE:CVX) has held discussions with Russia’s government on potential projects for tapping vast Arctic oil reserves the Ministry of Natural Resources said, a day after Russian PM Vladimir Putin announced his intention to free up access to the Northern offshore fields, reported Reuters.

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