2010 oil spill costs will hit $61.1b, BP says

The Hamilton Spectator - - BUSINESS - CAIN BUR­DEAU

Oil gi­ant BP PLC has put a fi­nal price tag on what its cat­a­strophic Gulf of Mex­ico oil spill cost the com­pany, and it’s a hefty sum: $61.6 bil­lion.

The com­pany is­sued the es­ti­mate Thurs­day, the first time it has put a to­tal cost on the catas­tro­phe.

BP said it ex­pects to spend a to­tal of $44 bil­lion af­ter tax de­duc­tions are fac­tored in. The new es­ti­mate in­cluded $5.2 bil­lion in new pre-tax costs.

In 2010, one of the com­pany’s deep-sea wells blew out off the coast of Louisiana, lead­ing to the sink­ing of the Deep­wa­ter Hori­zon drilling rig. Eleven rig work­ers were killed in the ex­plo­sions and mil­lions of gal­lons of oil spewed into the Gulf for 87 days.

BP said the cost es­ti­mate in­cluded all “re­main­ing ma­te­rial li­a­bil­i­ties.”

The com­pany has set­tled the ma­jor­ity of the claims filed against it by com­pa­nies, lo­cal, state and fed­eral gov­ern­ments and in­di­vid­u­als, such as scores of fish­er­men.

It said its new pre-tax $5.2 bil­lion cost es­ti­mate cov­ers “all out­stand­ing busi­ness and eco­nomic loss claims” stem­ming from lit­i­ga­tion filed by in­di­vid­u­als and com­pa­nies.

In April, a fed­eral judge ap­proved a $20 bil­lion set­tle­ment over eco­nomic and en­vi­ron­men­tal dam­age be­tween BP and state and fed­eral gov­ern­ments.

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