BP warns spill costs could rise after New Orleans court ruling

City A.M. Reporter
BP FACES higher compensation payouts related to the Deepwater Horizon oil spill than it was anticipating, the company disclosed in notes to its annual report yesterday.

BP had originally earmarked $8.5bn for payments, but now says they could come in significantly higher.

The disclosure follows a 5 March ruling in New Orleans that BP must keep paying certain types of oil spill compensation in much larger amounts and to more parties than it was expecting.

The decision applies to payments made as part of a settlement stemming from the Deepwater Horizon oil spill in the Gulf of Mexico in 2010 which BP has already agreed, but where the actual amount is uncapped.

BP yesterday said it disagreed with the ruling and that it would appeal it.