BP MAKES $3BN DEPOSIT IN $20BN RELIEF FUND
Baku, August 10 (AZERTAC). BP has made an initial deposit of $3bn (£1.8bn) into a $20bn compensation fund for the oil spill, after completing talks with the US Department of Justice, according to BP officials.
The fund, called an escrow account, was set up by the oil giant to compensate victims of the Gulf of Mexico spill.
BP`s response has cost $6.1bn already.
Meanwhile, BP`s relief well will reach the damaged well by the end of the week and start the final "kill", the government`s incident commander said.
An additional deposit of $2bn will be made in the fourth quarter by BP, with deposits of $1.25bn being deposited each of the following quarters until the $20bn has been paid in full.
"The purpose of the escrow account was to assure those adversely affected by the spill that we indeed intend to stand behind our commitment to them and to the American taxpayers," BP`s incoming chief executive Bob Dudley said in a statement.
Associate Attorney General Tom Perrelli later said the justice department was "pleased that BP made an initial contribution and has taken an important step toward honouring its commitment to the president and the residents and business owners in the Gulf region".
The account will be overseen by lawyer Kenneth Feinberg, who managed compensation claims made by victims of the 9/11 attacks.
The total $6.1bn cost of the spill includes the cost of the clean-up response, containment, relief well drilling and cementing-up of the damaged well.
The sum also includes grants to the Gulf states hit by the spill.
It also includes the $319m paid out in compensation to some of those affected by the spill.
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