- BP plc (British Petroleum) will pay $20 billion in fines for the disastrous Gulf of Mexico oil spill which occurred five years ago.
- Attorney General Loretta Lynch has said this will be the largest corporate settlement of its kind in US history.
- The fines are to be paid to the federal government, five Gulf Coast states and hundreds of municipalities over a period of 18 years.
- This corpus will finance environmental restoration and economic development programs to offset the worst oil spill in US history, and will launch one of the largest environmental restoration efforts the world has ever seen, said Lynch.
- Investors have hailed this settlement deal, as it caps liabilities that could have been much larger.
- The BP oil spill, also known as the Deepwater Horizon oil spill began on April 20th 2010, in the Gulf of Mexico. It is considered to be one of the largest oil spills in history, with irrevocable, large-scale environmental implications.
- As a result, BP agreed to four years of the government monitoring its safety practices and ethics in addition to the Environmental Protection Agency’s temporary ban on entering into new contracts with the US Government.
News Item Compiled by Krittika Chavaly