BP Names Assets as Collateral For Compensation Fund

Hugh Collins
Updated

BP (BP) named the U.S. oil assets that will help finance its $20 billion compensation fund for victims of the Gulf oil disaster.

Revenue from oil fields including Thunder Horse, Atlantis and Mad Dog will be tied to compensation payments, the oil giant said in a statement.

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"The pledging of these assets underscores our commitments to the Trust which we set up to pay all legitimate claims arising from the tragedy," said Lamar McKay, president of BP America Inc.

BP also said the cost of the disaster is now estimated at $11.2 billion.

A BP spokesman declined to comment to Reuters on whether the announcement meant that BP would be allowed to continue drilling for offshore oil.

In July, lawmakers passed an amendment to a bill that would prevent BP from acquiring drilling leases.

The Gulf oil disaster killed 11 workers in April and left the Macondo oil well spewing crude oil into the ocean for months.




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