BP May Still Have To Pay More Even After $19 Billion Settlement

Former BP Executive John Buchanan passes away; health issues not clear.

BP May Still Have To Pay More Even After $19 Billion Settlement

It seems like the payment saga is never going to end for BP plc. (NYSE:BP). Despite reaching a settlement of less than $19 billion, it seems BP might as well be stuck in the payment quagmire, as more claims are filed from those affected by the 2010 Gulf of Mexico oil spill.

The UK oil and gas major’s recent settlement resolved all of federal, as well as state claims, that came out as a result of the Deepwater Horizon incident, operated by a third party, and includes agreement with five Gulf states from Alabama to Texas – on top of 400 local governments in the region.

The settlement also includes a clause, in which calls for around $5.5 billion in civil penalty had to be paid over a period of 15 years under the Clean Water Act. Early this month, the company claimed that the amount, which it had paid for the oil spill disaster, is now less the $54 billion.

However, it does not end there. According to Finical Times, more than 115,000 claims have been filed at the Deepwater Horizon Claims Centre ahead of the June deadline, in which most reports have been either approved or rejected, but still some over 60,000 claims have not been settled yet. BP initially set aside more than $10 billion to pay for settlements, but overshot the amount by $2 billion more.

Meanwhile, John Buchanan, former BP Plc. Chief Financial Officer, has expired at the age of 72, according to BHP Billiton, where Buchanan has served as director. Mr. Buchanan has spent his more than three-decade long career, previously serving as top finance executive between the mid 1990’s to early 2000’s, whilst also serving as the COO for the company’s chemical divisions. He was appointed in the BHP board in 2003.

In January last year, Mr. Buchanan gave the first indication of his health status when Cambridge based chip designer ARM Holding Ltd. informed that he has stepped down from his position as chairman, citing his poor health and a medical condition that has left him unable to perform his duties. Like that time, BHP has not disclosed the details that lead to his death, and BP did not return calls when sought for comments on his death outside of its working business hours.

BP’s stock price ended the day at $39.68, a gain of 0.16% the previous day, despite the announcement of more settlement claims that may be due.


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