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BP hits $5 billion payout milestone for Deepwater Horizon spill

The BP oil spill fund has paid out more than $5 billion to Deepwater Horizon claimants as five year anniversary nears.
BP hits $5 billion payout milestone for Deepwater Horizon spill

As the five year anniversary of the 2010 Deepwater Horizon explosion nears, Patrick Juneau, the administrator overseeing the settlement fund, reported on his website that more than US$5B has been paid to 62,162 claimants impacted by the oil spill.

April 20th will mark the five year anniversary when a tragic explosion occurred on BP’s Macondo exploration well in the Gulf of Mexico. Eleven workers were killed and it resulted in the largest US offshore oil spill.

The money is being disbursed under a 2012 settlement which is administered by Juneau. Over the last few years, BP cried foul with some of the provisions in the settlement and pushed to oust Juneau as the administrator. BP argued that Juneau was paying out too much and including claimants who suffered no harm.

However, last month the London-based oil giant ended its bid to push out Juneau, noting that he had taken enough steps to reduce fraudulent claims according to a Reuters report.

In 2012, BP estimated it would pay out around $7.8B to address claims under the 2012 settlement, but by February the estimated settlement rose to $9.9B. Juneau stated that more than half of the payouts so far have compensated impacted businesses with a major portion going to the seafood industry. BP reports that it has already spent $28B on the spill which includes the response, cleanup, early restoration work and claims payments.

Read More: BP research initiative shows Gulf of Mexico recovery making headway

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