LONDON: BP Plc has reached a comprehensive $18.7 billion settlement with the US government and five states, a landmark deal that effectively ends years of litigation over environmental damage and human casualties caused by the 2010 Gulf of Mexico spill.
It could be the largest settlement with a single entity in US history, the US Justice Department said.
The April 20, 2010, rig explosion killed 11 workers and spewed millions of barrels of oil for nearly three months onto the shorelines of several states.
The agreement covers US Clean Water Act fines and natural resources damages, along with claims by Alabama, Florida, Louisiana, Mississippi, Texas and 400 local government entities.
BP’s London-listed shares rose as much as 5.3 percent as the extent of the company’s liabilities became clear for investors, even as it increased its cumulative pretax charge for the disaster by about $10 billion to $53.8 billion. BP’s New York-traded shares rose 5 percent to $41.20.
“This is a realistic outcome which provides clarity and certainty for all parties,” BP Chief Executive Officer Bob Dudley said in a statement.
“For BP, this agreement will resolve the largest liabilities remaining from the tragic accident.”
The size of the settlement was slightly more than the $17.6 billion that investors had feared BP would be fined under the Clean Water Act for gross negligence.
The maximum possible Clean Water Act fine was later trimmed to $13.7 billion after US District Court Judge Carl Barbier found 3.19 million barrels spilled, less than the US government claimed.
Barbier was expected to rule on that issue later this year, but even after that, BP would have still faced years of lawsuits to address claims by states and by the federal government under a natural resources damage assessment.
The settlement announced Thursday closes off the remaining liabilities and will bring over $6.8 billion to states.
“This agreement will not only restore the damage inflicted on our coastal resources by the Deepwater Horizon oil spill, it will also allow Louisiana to continue aggressively fighting coastal erosion,” Louisiana Governor Bobby Jindal.
BP settles 2010 US oil spill claims for $18.7bn
BP settles 2010 US oil spill claims for $18.7bn
Closing Bell: Saudi main index slips to close at 10,588
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 127.15 points, or 1.19 percent, to close at 10,588.83.
The total trading turnover of the benchmark index was SR2.57 billion ($685 million), as 28 of the stocks advanced and 232 retreated.
Similarly, the Kingdom’s parallel market Nomu lost 108.53 points, or 0.46 percent, to close at 23,719.13. This comes as 22 of the stocks advanced while 47 retreated.
The MSCI Tadawul Index lost 17.17 points, or 1.22 percent, to close at 1,393.34.
The best-performing stock of the day was Sport Clubs Co., whose share price surged 3.69 percent to SR9.00.
Other top performers included Flynas Co., whose share price rose 2.55 percent to SR72.30, as well as National Industrialization Co., whose share price surged 2.13 percent to SR10.09.
Consolidated Grunenfelder Saady Holding Co. recorded the most significant drop, falling 6.61 percent to SR8.90.
Sustained Infrastructure Holding Co. also saw its stock prices fall 5.75 percent to SR30.82.
CHUBB Arabia Cooperative Insurance Co. also saw its stock prices decline 5.72 percent to SR22.40.
On the announcements front, Wataniya Insurance Co. said it has received a notice of award for a one-year contract with Saudi National Bank to provide general insurance as well as protection and savings insurance services, in line with agreed terms and conditions.
According to a Tadawul statement, coverage will begin on Jan. 1, 2026. The contract value exceeds 15 percent of the company’s total revenues, based on its latest audited financial statements for 2024.
Wataniya Insurance Co. ended the session at SR14.35, up 1.92 percent.
Fawaz Abdulaziz Alhokair Co., or Cenomi Retail, has announced executing a SR1.5 billion facility agreement structured as a short-term loan with Emirates NBD – Kingdom of Saudi Arabia. A bourse filing revealed that the financing duration is three years with an option to extend for a total of two years.
Cenomi Retail ended the session at SR20.00, up 0.26 percent.
First Milling Co. has announced the Board of Directors’ recommendation to amend the firm’s bylaws Article “Company Management” to increase the number of board members from seven to eight. This change reflects the firm’s commitment to broadening the range of expertise and skills on its board, in line with its growth and expansion plans for the next phase.
The company reiterated its commitment to fulfilling all necessary procedures and obtaining approvals from the relevant authorities. The recommendation will be submitted to the upcoming General Assembly, with the date to be announced in due course.
First Milling Co. ended the session at SR49.22, down 1.06 percent.
