BP Gets New Settlement with Louisiana over Deepwater Horizon Disaster

SUBSCRIBE SEARCH ARTICLES NEWS BP reached an agreement with the state of Louisiana that will close lengthy litigation over the deadly Deepwater Horizon catastrophe in the Gulf of America in 2010, in exchange for an early but reduced payment of remaining claims. Image by BERKO85 via iStock

BP PLC has reached an agreement with the state of Louisiana that will close lengthy litigation over the deadly Deepwater Horizon catastrophe in the Gulf of America in 2010, in exchange for an early but reduced payment of remaining claims.

The British energy giant will settle early its remaining payments of around $350 million to Louisiana under a broader 2015 settlement of up to nearly $19 billion. The dues will be paid in a single transaction rather than spread over the next seven years, BP said in an online statement.

"The remaining coastal zone lawsuits brought by Louisiana parishes to which BP is a party will be resolved, bringing long-running litigation to a close", BP said.

On April 20, 2010 the drilling rig, operating in the Macondo Prospect, exploded and sank, resulting in the death of 11 workers and what the Environmental Protection Agency (EPA) calls the largest oil spill in the history of offshore oil drilling. Four million barrels flowed from the damaged well over a period of more than 12 weeks, according to the EPA.

Under the 2015 settlement agreements covering federal, state and local government claims, approved by a federal court in 2016, BP agreed to pay up to $18.7 billion including $4.9 billion to Louisiana and four other Gulf states over 18 years.

"Under the existing schedule, BP's remaining payments of $373 million to Louisiana under the Economic Damages Settlement are due in equal payments with no interest over the next seven years", BP said announcing the new agreement with the state administration under Jeff Landry. The new agreement has reduced the amount by around $23 million.

The Republican governor claimed, "As governor I have worked to responsibly and ethically, clean up the litigation environment that has impacted one of our largest employers - the oil and gas industry".

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"We have now disposed of claims and settled with all but one of the major defendants in these coastal cases", Landry added. "This sends a signal to job creators all over America that Louisiana welcomes jobs and economic growth while responsibly dealing with the issues of the past".

Attorney-General Liz Murrill added, "Resolving issues of the past paves our way to a brighter future working relationship".

Orlando Alvarez, chair and president of BP America, noted, "Louisiana is home to more than 800 BP employees, and our business here - from the Haynesville to the Gulf of America - is central to BP's future in the US".

The company added, "In 2025, the company spent $590 million with Louisiana vendors and paid more than $280 million in royalties and property and franchise taxes in the state. BP is one of the largest producers, leaseholders and investors in the Gulf of America, and through BPX Energy holds a strong position in the Haynesville".

"We will never forget the 11 men who lost their lives, or the impact on their families, communities and the environment across the Gulf Coast", BP chief executive Meg O'Neill said.

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