BP oil spill costs rise to $11bn

2010-10-01 18:31

London – BP has announced that the cost of its Gulf of Mexico well blowout has reached $11.2bn, and the company has put up some assets to guarantee payment of claims.

BP said on Friday that it had pledged royalty interests in production from several platforms in the Gulf including Thunder Horse, which began production two years ago.

Lamar McKay, the president of BP America, said the collateral backs up the company's commitment to pay all legitimate claims arising from the disastrous blowout of the Macondo well.

BP said more than $1.2bn has been paid so far to tens of thousands of claimants affected by the spill.

The announcement comes as Bob Dudley took over as chief executive of the company, replacing Tony Hayward.