Oil spill cost for BP: $650MM

By Phaedra Friend Troy

BP reported today that the company has spent some $650 million on the oil spill response in the Gulf of Mexico.

Five days ago, BP reported that its oil spill response costs were $450 million. In less than a week, the company has committed or spent another $200 million in its efforts to stop the oil spill and clean up the Gulf Coast.

The investment includes its subsea efforts to stop the oil from flowing from the Macondo well, as well as above-the-water pursuits to mitigate the oil that has already leaked from the well.

Included in the cost, BP promised $70 million in grants to the US Gulf Coast states of Florida, Alabama, Louisiana and Mississippi.

Currently, there are 15,600 claims that have been filed, and BP has paid 2,700 of them.

BP is the operator of the Macondo well, which the Deepwater Horizon rig caught fire during drilling operations. The rig exploded and sunk to the seafloor 5,000 feet below, and 11 men were lost. Oil has been spilling from the Macondo well at a rate of 5,000 barrels a day for nearly a month.

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