BP spill costs touch $2 bn; claims rise to over 65,000 | business | Hindustan Times
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BP spill costs touch $2 bn; claims rise to over 65,000

business Updated: Jun 21, 2010 23:50 IST

Even as it continued to grapple with mounting problems, embattled British energy major BP Plc on Monday revised expenses related to the Mexican Gulf oil disaster upwards to $2 billion (Rs 9,140 crore).

Under pressure from the US administration to speed up efforts to contain the oil spill and compensate victims, BP had announced a $20-billion (Rs 91,400 crore) claims fund.

“The cost of response to date amounts to approximately $2 billion, including the cost of the spill response, containment, relief well drilling, grants to the (Mexican) Gulf states, claims paid, and federal costs,” BP said in a statement.

Last week, BP had pegged oil spill-related costs at $1.4 billion (Rs 6,398 crore).

Till date, the oil major has received over 65,000 claims. More than 32,000 payments have been made, totalling over $ 105 million.

Signalling that costs could rise, BP noted that it is still too early to quantify other potential costs and liabilities associated with the incident.

The disaster was caused by an explosion in April on the Deepwater Horizon rig in the Gulf of Mexico, and thousands of barrels of oil are estimated to be leaking into the Gulf of Mexico every day.

Going by reports, the total cost due to the oil spill is projected to be around $ 50 billion (Rs 2.3 lakh crore).

Apart from difficulties in containing the oil spill, the company is facing resistance from a partner with regard to sharing the responsibility.

BP asserted that it is committed to cleaning up the oil spill and related legitimate claims, despite its dispute with partner Anadarko Petroleum Corporation.