BP Must Set Aside 20Bn To Cover Oil Spill

After white house talks, President Obama has announced that BP must set aside 20 Billion, which is equivalent to their annual profit and the funds will be managed by Kenneth Feinberg, to provide compensation to oil spill victims.

Kenneth Feinberg is a lawyer who also oversaw the 911 compensation packages after the 911 attacks.

BP chairman Carl-Henric Svanberg said dividends would not be paid for the rest of this year.

President Obama has also instructed a 120 million dollar fund to be set up to compensate oil industry workers.

BP’s share price has fallen due to this news and BP has been accused of not following proper procedures leading up to the explosion of the Deepwater horizon.

Scientists believe as much as 35,000 to 60,000 barrels of oil continue to leak daily and oil is washing up on the shores of the gulf coast states.

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Posted by PNeedham on Jun 16 2010. Filed under Business, Featured News, Health. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry