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.