BP says cost of Gulf spill has reached $8 billion

BP has revealed that the Deepwater Horizon rig disaster has so far cost it $8 billion (£5.19 billion).

The company said that the figure included all pay outs related to the cost of the 'spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs.'

BP said that since the processing of all claims from individuals and companies related to the disaster had passed to the Gulf Coast Claims Committee (GCCF) under Ken Feinberg on 23 August, 42,000 claims had been submitted, equating to more than 4,900 claims totalling $38.5 million in pay outs.

Prior to 23 August, BP said it had made 127,000 claims payments, totalling almost $400 million.The company agreed to create a $20 billion escrow account in June in repsonse to demands from US authorities. It also agreed to suspend at least its next three dividend payouts.

The news comes as BP announced its relief well had reached a depth of 17,909 feet and was expected to intersect the blown Macondo (MC252) well by mid September, weather permitting.

It said no new oil had leaked into the Gulf of Mexico from the well since July 15 and also reported that no volumes of oily liquid had needed to be recovered from the surface since July 21, while the last conrolled surface burning of oil had taken place on 20 July.

But BP said it was continuing to conduct overflights and other reconnaissance to search for oil on the surface.

Shares in the group have recovered in recent weeks since the leaking well was capped, after reaching a low of 303p. Last night the company closed at 393p, still well off its year high of 653p just prior to the rig disaster in late April.