BP Costs For Golf Of Mexico Spill Could Be Up To $90 Billion

BP Costs For Golf Of Mexico Spill Could Be Up To $90 Billion

The Gulf of Mexico disaster might end up costing more than BP expected with new claims more than doubling the $42.2 billion set aside to deal with the matter.

While British Petroleum is already taking a hit with profits having been reduced to nearly half in 2012 as it paid penalties for the disaster by selling assets, these last claims could mean an unsure future for the energy giants.

BP recently had to raise the Gulf of Mexico sum to $42 billion as it was hit with a record setting $4.5 billion bill after pleading guilty to charges of manslaughter of the men that died during the tragic accident.

The bulk of the new claims in the sum of $34 billion come from the U.S. government. British Petroleum said it would contest the claims saying that the calculations were flawed, and while they were centered on supposed tax revenues British Petroleum said that legislation doesn't support their overstated claims.

British Petroleum chief financial officer Brian Gilvary also added that the $42 billion dollar provision they set aside is a fair and balanced one and that BP gave the biggest stimulus the Gulf area has seen in its history, while also hiring 40,000 people and as a direct consequence paying taxes.

Posted by James Fried on Wednesday February 06 2013, 3:48 AM EST. Ref: The Telegraph. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0