BP seeks David Cameron’s help as oil spill costs rise

BP is calling on the UK Government to step in over the firm’s rising compensation costs associated with the Gulf of Mexico oil disaster, according to reports. The firm agreed […]

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By Priyanka Shrestha

BP is calling on the UK Government to step in over the firm’s rising compensation costs associated with the Gulf of Mexico oil disaster, according to reports.

The firm agreed to pay £5.4 billion in compensation last year after the Deepwater Horizon disaster killed 11 oil rig workers and released around four million barrels of oil into the sea. That was for around 10,000 people and companies, including restaurant owners and fishermen, who claimed their livelihoods and health had been affected as a result of the accident.

However, reports claim the oil giant expects to pay a much higher figure as it believes the compensation system is being abused. The amount of cash being released could turn into a “financial crisis” for the company and the firm is hoping Prime Minister David Cameron will raise the issue at the G8 meeting next month, the BBC reported.

When asked about the speculation, BP failed to comment directly to ELN.

Earlier this week, the offices of BP and Shell were raided by officials from the European Commission following allegations the firms colluded in fixing oil prices over the last 10 years.