Dudley Says BP Gulf Spill Settlement Unlikely as Costs Rise

July 30, 2013

Bloomberg reports that BP Plc CEO Bob Dudley said it’s unlikely Europe’s second-biggest oil company will reach a settlement with the U.S. over the Gulf of Mexico disaster as provisions set aside to pay for the spill rose.

“It’s highly unlikely we are now going to enter into detailed settlement discussions,” Dudley told reporters in London today. “We’re digging in for the long term.”

BP fell the most since 2011 on Dudley’s remarks and after second-quarter profit dropped more than analysts expected. The company lost a bid this month to halt payments to spill victims that it says are being unjustly awarded and today raised its estimate for the accident’s total cost to $42.4 billion. The final bill is still uncertain three years after the blowout at the Macondo well.
“The loss claims have really been misinterpreted from the agreement that we signed in good faith,” Dudley said in a Bloomberg Television interview. “We’re going to fight this.”

Copyright: Bloomberg, 2013.