BATON ROUGE -- BP's chief claims manager told a joint legislative committee today that the Deepwater Horizon-BP oil spill in the Guf of Mexico has cost the company about $6 billion so far and the tab grows daily. In an appearance before the House and Senate Insurance committees, Geir Robinson said that of the $6 billion spent, just under $400 million has gone to pay claims...
BATON ROUGE -- BP's chief claims manager told a joint legislative committee today that the Deepwater Horizon-BP oil spill in the Guf of Mexico has cost the company about $6 billion so far and the tab grows daily.
Oil is seen in red rivers along the surface in the Gulf of Mexico. An aerial of the Deepwater Horizon site in July. In an appearance before the House and Senate Insurance committees, Geir Robinson said that of the $6 billion spent, just under $400 million has gone to pay claims to individuals and businesses along the Gulf Coast states affected by the disaster.
Of the $399 million paid in claims so far, $152 million has gone to Louisiana individuals and businesses that have been hurt by the spill.
"This is a long road," Robinson said. "We are committed to making it right. ... We realize we will be judged by our actions here."
Members of the panel pressed Robinson on BP's financial viability to pay mounting costs as well as the $20 billion being put in an escrow fund that is now being administered by third-party administrator Ken Feinberg for claims to individuals and businesses hit hardest by the spill.
The $6 billion spent so far is not part of the $20 billion being held in escrow, said Carl Connor, BP's government and public affairs director for Louisiana.
The escrow fund, Robinson said, is a way of guaranteeing BP will honor its commitment" to the Gulf Coast
"It (the $20 billion fund) is neither a floor nor a ceiling," Robinson said. "There is every indication that the full resources of BP" will be available to pay claims and other expenses, he said. "There is no indication we are about to go bankrupt."
He said that BP officials are looking at up to another $12 billion to pay for federal and state responses to the oil spill, legal fees and potential fines to be assessed by the federal and state governments.
Rep. Chuck Kleckley, R-Lake Charles, praised BP for its quick turnaround on claims so far and said he wants that to continue. He said some claims are being paid in a matter of a week or less.
The claims process is now in the hands of the Gulf Coast Claims Facility, which is administered by Feinberg.
Robinson said that the company has also contributed $100 million toward a fund to be administered by the Baton Rouge Area Foundation to help workers who have been or may be displaced by President Barack Obama's moratorium on deepwater drilling that was spawned by the disaster.
But Robinson deflected questions about the responsibility for the moratorium.
"BP has to accept some of that responsibility" for bringing about a temporary end to deepwater drilling, said Rep. Noble Ellington, D-Winnsboro. "The (federal) government is responsible for the moratorium," Robinson said. "We did not cause the moratorium."
Some of the other money BP has paid to the state includes:
- $120 million for sand berms off the coast to prevent oil from seeping into fisheries and wetlands. Another $240 million has been pledged for more berm work.
- $140 million for the Vessels of Opportunity program, which pays fishermen to use their boats dailty in the spill clean-up and recivery.
- $15 million for tourism promotion.
- $13.2 million for testing of Louisiana-caught seafoood.
Information on filing claims can be obtained at or 1.800.916.4893 or www.gulfcoastclaimsfacility.com.
Ed Anderson can be reached at eanderson@timespicayune.com or 225.342.5810.