The BP Board has announced a package of measures to tackle the oil spill.
Following a meeting with US President Barack Obama, the BP Board has announced a package of measures to tackle the oil spill.
The group will create a $20 billion claims fund over the next three-and-a-half years, initially contributing $3 billion in the third quarter of 2010 and a further £2 billion in the final quarter of the year. These will be followed by a payment of $1.25 billion per quarter until a total of $20 billion has been paid in.
BP says the fund will be available to satisfy claims such as natural resource damages and state and local response costs.
The company says business continues to perform well, "with cash flows from operations expected to exceed $30 billion in 2010", not including costs relating to the oil spill.
BP's chief executive, Tony Hayward, said: "Our top priority is to contain the spill, clean up the oil and mitigate the damage to the Gulf coast community. We will not rest until the job is done."