BP to pay $18.7 billion to 5 states for Gulf of Mexico oil spill

BP has reached an $18.7 billion settlement with the federal government and five states, effectively ending litigation stemming from the 2010 Deepwater Horizon rig explosion and subsequent oil spill.

The fire killed 11 workers and underwater oil gusher contaminated U.S. shorelines in the Gulf of Mexico.

According to the Justice Department, the settlement covers fines under the Clean Water Act, natural resource damages, and claims by state and local governments for economic damages related to the spill.

“This is a realistic outcome which provides clarity and certainty for all parties,” BP Chief Executive Officer Bob Dudley said in a statement. “For BP, this agreement will resolve the largest liabilities remaining from the tragic accident.”

The agreement will be submitted for public comment and undergo court approval.

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