The BP oil spill accident fund

The BP oil spill fund has been established. Oil rig accident lawyers in Texas need to know that BP will pay $20 billion into an independently managed fund. They will also suspend dividend payments for the year. BP will sell $10 billion of 'upstream' oil exploration assets to helppay for the fund. BP will also ask for contributions to the fund from the various contractors who were involved in the Deepwater Horizon oil spill. These contractors will include Transocean, Halliburton and Anadarko.

The oil spill fund will be administered by Kenneth Feinberg. Mr. Feinberg has overseen compensation for executives at companies that received federal bailout funds. BP’s fund commitments are much harsher penalties than many investors wanted. Many investors did not want BP to sell any assets or cut investment. This will tend to slow BP’s growth.

There will certainly be conflicts in who will receive compensation. How far up the chain do the losses go? It will also be interesting to see how insurance interests who could be on the hook will deal with BP. The fund is set up for only four years, so it is unknown what will happen if claims last for years or even decades longer.

Contact Texas oil rig accident attorney Scott Nelson if you have been harmed by this spill. Mr. Nelson serves Houston, Galveston, Corpus Christi and all of Texas.