Jan 16, 2018

BP to take further $1.7bn charge for Deepwater Horizon disaster

BP is to take a further $1.7bn charge related to the Deepwater Horizon oil spill, bringing the total cost above $65bn, as the 2010 disaster continues to weigh on the company's finances almost eight years later. BP also increased its estimate for cash outflows related to Deepwater Horizon this year, saying it now expected these to reach $3bn from a previous estimate for just over $2bn. The group said the latest charge brought further clarity to remaining costs and reiterated that the class action settlement process was winding down. The estimated final bill has edged up from the $61.6bn forecast by BP in 2016 to $65.1bn after the latest charge. Tuesday's announcement related to compensation claims from businesses for economic losses caused by the disaster, which killed 11 men in an explosion on the Deepwater Horizon drilling rig and spilled 3m barrels of oil into the water. The $1.7bn Deepwater Horizon charge will add to a forecast $1.5bn non-cash charge related to US tax changes which BP had already warned investors to expect in its fourth-quarter results.

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