BP, Louisiana Agree to $350 Million Early Deepwater Horizon Payment

BP and Louisiana signed a deal Friday to replace seven years of scheduled Deepwater Horizon payments with an early $350 million payment, giving the state access to the funds sooner than under the existing schedule.

Louisiana had been scheduled to receive $373 million in equal, interest-free installments over the next seven years. The new payment is about $23 million less in nominal terms. The agreement also calls for resolving remaining coastal-zone lawsuits brought by Louisiana parishes against BP.

Gov. Jeff Landry, Attorney General Liz Murrill and BP CEO Meg O’Neill signed the agreement. “This agreement with Louisiana accelerates the delivery of our commitments and provides the state with access to these funds now,” O’Neill said.

The Louisiana deal accounts for more than 20% of BP’s remaining payments to five Gulf Coast states under the Economic Damages Settlement. BP’s 2015 settlement provided for $4.9 billion over 18 years to resolve economic and other claims by the five states. A federal court entered a related consent decree on April 4, 2016.

The settlement followed the 2010 Deepwater Horizon disaster, which killed 11 people.