Laman Zeynalova
Deputy Editor-in-Chief Read more
BAKU, Azerbaijan, October 24. British energy major bp has reached an agreement with the U.S. state of Louisiana to accelerate payments under the settlement of economic damages stemming from the 2010 Deepwater Horizon oil spill and resolve remaining coastal zone litigation, bp said on October 23.
Under the agreement signed by Louisiana Governor Jeff Landry, Attorney General Liz Murrill and bp CEO Meg O’Neill, the company will make a single payment of approximately $350 million to the state, bringing forward its remaining obligations under the 2015 Economic Damages Settlement.
The payment replaces $373 million that bp had been scheduled to pay in equal installments, without interest, over the next seven years. The agreement provides Louisiana with earlier access to the funds while resolving the remaining coastal zone lawsuits brought by Louisiana parishes to which bp is a party.
“This agreement with Louisiana accelerates the delivery of our commitments and provides the state with access to these funds now,” O’Neill said.
She also recalled the 11 people who died in the Deepwater Horizon disaster and the impact on their families, Gulf Coast communities and the environment, adding that lessons from the tragedy continue to guide bp’s operations.
Louisiana Governor Jeff Landry said the agreement was another step toward resolving longstanding litigation affecting the state’s oil and gas industry and creating a more stable environment for investment and job creation.
Attorney General Liz Murrill said resolving legacy disputes would support a more stable energy supply and strengthen cooperation between the state and the company.
Orlando Alvarez, chairman and president of bp America, said Louisiana was home to more than 800 bp employees and remained central to the company’s US operations, including its activities in the Haynesville region and the Gulf of America.
In 2025, bp spent $590 million with Louisiana-based vendors and paid more than $280 million in royalties, property taxes and franchise taxes in the state.
The company is one of the largest producers, leaseholders and investors in the Gulf of America and maintains a significant position in the Haynesville through its subsidiary bpx energy.
In 2015, bp reached agreements to settle federal, state and local government claims arising from the disaster for up to $18.7 billion. A federal court approved the settlement in April 2016, with payments scheduled over 18 years.
Of that amount, $4.9 billion was allocated over 18 years to settle economic and other claims brought by the five Gulf Coast states. The Louisiana agreement accounts for more than 20% of bp’s outstanding payments to those states under the Economic Damages Settlement.
On April 20, 2010, the oil drilling rig Deepwater Horizon, operating in the Macondo Prospect in the Gulf of America, exploded and sank resulting in the death of 11 workers on the Deepwater Horizon and the largest spill of oil in the history of marine oil drilling operations. Four million barrels of oil flowed from the damaged Macondo well over an 87-day period, before it was finally capped on July 15, 2010. On December 15, 2010, the United States filed a complaint in District Court against BP Exploration & Production and several other defendants alleged to be responsible for the spill.