(Sky News) — A federal judge has granted final approval to an estimated $20bn (£14bn) settlement over the 2010 BP oil spill in the Gulf of Mexico.
The settlement, first announced in July, includes $5.5bn in civil Clean Water Act penalties and billions more to cover environmental damage and other claims by the five Gulf states.
The US Justice Department has estimated that the settlement will cost BP up to $20.8bn – the largest environmental settlement in US history.
US District Judge Carl Barbier had earlier ruled that BP had been “grossly negligent” in the Deepwater Horizon rig explosion which killed 11 workers and caused a 134 million gallon oil spill.
In 2012, BP reached a similar settlement with lawyers for businesses and residents who claimed the spill cost them money.
That deal, which does not have an upper limit, led to a long court battle over payouts to businesses, with a claims administrator still processing many cases.
BP has estimated the costs related to the spill – including cleanup work, settlements and criminal and civil penalties – will be more than $53bn (£37bn).
Spokesman Geoff Morrell said: “We are pleased that the court has entered the Consent Decree, finalising the historic settlement announced last July.”
US Attorney General Loretta Lynch praised the settlement.
In a statement, she said: “Today’s actions holds BP accountable with the largest environmental penalty of all time while launching one of the most extensive restoration efforts ever undertaken.”
Louisiana Governor John Bel Edwards said the decision allowed the state to receive critical restoration funding. Coastal marshes in the state were damaged by the oil spill.
The money will be paid out over the next 16 years.
