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BP estimates $61.6B cost from 2010 spill

BP estimates $61.6B cost from 2010 spill
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The massive 2010 Gulf of Mexico oil spill at a BP-leased well will cost the company a total of $61.6 billion, it estimated.

The figure, released late Thursday, is $5.2 billion higher than the most recent estimate, BP said in a statement.

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The total includes numerous payments, legal costs, cleanup costs and other expenses related to the Deepwater Horizon disaster, the biggest offshore oil spill in U.S. history, including a $20.8 billion settlement with the federal government and five states, the largest for the federal government in history.

BP has also agreed to pay to settle criminal charges and accusations that it underestimated the size of the spill, as well as payments for private property and economic damages.

An explosion killed 11 workers when the rig lost control of the undersea well. It was followed by an 87-day uncontrolled oil spill into Gulf waters.

BP released the estimate in part to ensure investors that it is prepared to handle the remaining costs.

“Over the past few months we’ve made significant progress resolving outstanding Deepwater Horizon claims and today we can estimate all the material liabilities remaining from the incident,” Brian Gilvary, the company’s chief financial officer, said in the statement. “Importantly, we have a clear plan for managing these costs and it provides our investors with certainty going forward.”

Any additional costs from the spill are not likely to affect the company’s financial performance, BP said.