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BP Takes $1.7 Billion Charge on Deepwater Horizon Claims Closure

Cash payments related to Deepwater Horizon in 2018 are now anticipated to be about $3 billion.

BP Plc expects to book a post-tax non-operating charge of about $1.7 billion in its fourth-quarter results, reflecting the remaining losses and claims from the 2010 Deepwater Horizon disaster.

“With the claims facility’s work very nearly done, we now have better visibility into the remaining liability,” Chief Financial Officer Brian Gilvary said Tuesday in a statement. “The charge we are taking as a result is fully manageable within our existing financial framework, especially now that we have the company back into balance at $50 per barrel.”

Cash payments related to Deepwater Horizon in 2018 are now anticipated to be about $3 billion, higher than the company’s third-quarter estimate of just over $2 billion. BP will continue to “vigorously appeal” determinations of claims that it believes are non-compensable under the settlement agreement.

The company will publish its fourth-quarter results on Feb. 6.

By Amanda Jordan

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