Oil Spill Crude Disaster

Mar 8, 2013 11:30 AM by AP

BP warns of rising costs from spill settlement

NEW ORLEANS (AP) - BP is warning investors that the price tag will be higher than initially estimated for its multibillion-dollar settlement with businesses and residents who claim the 2010 oil spill in the Gulf of Mexico cost them money.

The London-based oil giant estimated last year it would spend roughly $7.8 billion to resolve tens of thousands of claims covered by the settlement agreement. But in a regulatory filing this week, BP PLC said businesses' claims have been paid at much higher average amounts than anticipated.

The company also said it can't reliably estimate how much it will pay for unresolved business claims following a ruling Tuesday by the federal judge supervising the uncapped settlement. U.S District Judge Carl Barbier rejected BP's interpretation of certain settlement provisions.

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