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30 Jul 2013

Angela Monaghan, Guardian (UK)

BP's Deepwater compensation fund running dry

BP has revealed that there is just $300m (£196.7m) left in its Gulf of Mexico oil spill compensation fund as it vowed to fight "false and fictitious" claims related to the disaster. The oil company took another $1.4bn in provisions related to the Deepwater Horizon disaster in the second quarter, nearly exhausting a $20bn fund set aside to deal with damages payments…"There are a significant number of business economic loss claims which have been received but have not yet been processed, and further claims are likely to be received," the company said. BP's chief executive, Bob Dudley, said…that while BP was happy to pay out for legitimate claims from hotels, restaurants and shops along the coastline, it was appealing against claims from larger businesses such as construction companies and farms that were claiming economic loss despite being located "far away from the coast"…