BP allocates $360m to fund Louisiana barrier islands
BP announced yesterday that it had established a $360 million escrow account to fund immediately the construction of six sand barriers off the coast of Louisiana approved by the U.S. government, BP press release said.
BP has been directed to pay for the construction by the federal government.
Since the environmental implications of the projects are not fully understood, the company assumes no liability for unexpected or unintended consequences of these projects, BP said.
BP has already provided $170 million to Louisiana, Alabama, Mississippi and Florida to help with their response costs and help promote their tourism industries. The company has also paid approximately $43 million in compensation to people and companies affected by the spill.
The $300m fund increases the BP’ bill to about $1.4bn spent for the Gulf of Mexico oil spill response.
BP share prices have continued to plummet in trading on the London Stock Exchange, amid news the US justice department has opened several civil and criminal inquiries into the Gulf spill, BBC said.
A "top kill" procedure, which had been considered the best hope for plugging the leak, failed over the weekend.
The oil began leaking into the Gulf of Mexico on 20 April when the Deepwater Horizon drilling rig, leased to BP, exploded, killing 11 workers.