The huge oil spillage in the Gulf of Mexico could cost British energy giant BP over 3 billion pounds ($4.6 billion) in containment and clean-up expenses, according to the Mail on Sunday.
The report said BP's own insurance company Jupiter had laid off some catastrophe risk to larger reinsurers such as Lloyd's of London, Swiss Re or Munich Re.
A ruptured deepwater well last month spilled millions of litres of oil into the Gulf of Mexico, spreading to the coast of Louisiana, threatening fish and shrimp breeding grounds and vulnerable wetlands teeming with wildlife.
The Sunday Telegraph added that BP had received several notices of legal action over the explosion on April 20 in which 11 men were killed.
Meanwhile, BP's Chairman Lamar McKay has rejected criticism that his company’s safety record played a role in the oil spill. The BP chairman blamed “a failed piece of equipment.” for the oil spill.
BP’s shares had dropped 7 per cent in London on Thursday on news of oil spill.