BP wins reprieve over compensation for oil spill

October 3, 2013
Oil is seen on the surface of the water from the massive oil spill on May 9, 2010 in Gulf of Mexico

A US court has given BP a boost in its fight to limit how much it must pay in compensation for the 2010 oil spill disaster in the Gulf of Mexico.

An in New Orleans ruled on Wednesday that payments to some companies with disputed loss claims arising from the Deepwater Horizon spill must stop, pending further study by a lower court.

The British energy giant reached a $7.8 billion (5.73-billion-euro) last year with thousands of people and businesses hit by the worst environmental disaster in US history.

But it has been challenging the way Patrick Juneau, the lower court-appointed administrator of claims, calculates companies' compensation for lost profits.

BP said Juneau's methods led to payouts that were too large or improper and that because of this it could not longer estimate how much it would have to pay out.

The appeals court said late on Wednesday that District Court Judge Carl Barbier had to re-examine the language of the settlement to resolve how losses should be calculated.

It also said he had to probe whether settlement money was going to companies not affected by the spill.

BP welcomed the ruling, saying it "affirms what BP has been saying since the beginning: claimants should not be paid for fictitious or wholly non-existent losses.

"We are gratified that the systematic payment of such claims by the claims administrator must now come to an end."

The Deepwater Horizon rig exploded and killed 11 workers, and spilled oil for 87 days until it was plugged. The disaster blackened beaches in five states and crippled the region's tourism and fishing industries in a tragedy that riveted the United States.

Explore further: Mitsui to pay record fine for Gulf oil spill

Related Stories

BP seals $7.8 bn settlement in US oil spill

April 18, 2012

Oil giant BP said Wednesday it has finalized a $7.8 billion deal to settle thousands of claims from fishermen and others affected by the 2010 Gulf of Mexico oil spill.

BP accused of gross negligence in US spill

September 5, 2012

The US Justice Department has accused oil giant BP of "gross negligence and willful misconduct" in the massive 2010 Gulf of Mexico oil spill, in court documents obtained Wednesday.

BP near settlement with US over Gulf spill

November 15, 2012

British oil company BP said Thursday it is in advanced talks with U.S. agencies about settling criminal and other claims from the Gulf of Mexico well blowout two years ago.

Judge clears BP's $7.8 bn settlement in US oil spill

December 22, 2012

British oil giant BP won approval Friday from a US federal judge of a $7.8 billion settlement with people and businesses who lost money and property due to the 2010 oil spill in the Gulf of Mexico.

Recommended for you

Playing 'tag' with pollution lets scientists see who's 'it'

July 29, 2015

Using a climate model that can tag sources of soot from different global regions and can track where it lands on the Tibetan Plateau, researchers have determined which areas around the plateau contribute the most soot—and ...

'Carbon sink' detected underneath world's deserts

July 28, 2015

The world's deserts may be storing some of the climate-changing carbon dioxide emitted by human activities, a new study suggests. Massive aquifers underneath deserts could hold more carbon than all the plants on land, according ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.