Analysts: BP oil spill claims below $20 billion

Vince Coglianese | Contributor

(Reuters) – BP believes compensation claims related to its Gulf of Mexico oil spill will be less than the $20 billion the oil giant has put into an independent claims fund, analysts at Citigroup said, following a meeting with incoming Chief Executive Bob Dudley.

“He added that given current estimates of claims the $20 billion Independent Claim Fund (ICF) that BP established probably exceeds calls,” Citigroup said in a research note.

Dudley added the $32 billion provision BP made for the total cost of the disaster remained a reasonable indicator of eventual cost.

Dudley also told the analysts that claims by Gulf states for lost tax revenue related to the spill “should not be too high” as any tax drops due to lower economic activity following the spill would be offset by the economic stimulus of the response effort.

Full Story: BP sees oil spill claims below $20 billion: analysts | Reuters

ANOTHER OFFSHORE EXPLOSION IN GULF

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