bp and Louisiana Resolve Deepwater Horizon Disputes with Early Payment
News related to:bp · 2 min read
HOUSTON, Oct. 23, 2026 /CourierPR/ -- bp and the State of Louisiana have reached a significant agreement to resolve long-standing disputes stemming from the 2010 Deepwater Horizon oil spill, marking a new chapter in their relationship. Under the agreement, signed by Governor Jeff Landry, Attorney General Liz Murrill, and bp CEO Meg O'Neill, bp will bring forward its remaining payments to Louisiana under the 2015 Deepwater Horizon Economic Damages Settlement into a single early payment of approximately $350 million. This move provides the state with immediate access to the funds, rather than waiting over the next seven years.
The agreement also resolves the remaining coastal zone lawsuits brought by Louisiana parishes against bp, bringing long-running litigation to a close. This resolution is seen as a significant step in resetting the relationship between the two parties, allowing them to focus on future endeavors.
Meg O'Neill, bp's CEO, expressed gratitude to the state for coming to the table.
Orlando Alvarez, chairman and president of bp America, emphasized the company's commitment to the state.
According to bp, the company is a significant energy investor in the State of Louisiana. In 2025, bp spent $590 million with Louisiana vendors and paid more than $280 million in royalties and property and franchise taxes in the state. bp is one of the largest producers, leaseholders, and investors in the Gulf of America, and through bpx energy holds a strong position in the Haynesville.
In 2015, bp reached agreements to settle federal, state, and local government claims arising from the 2010 Deepwater Horizon accident for up to $18.7 billion, with payments spread over 18 years. The settlement was approved by a federal court in April 2016. Under the settlement, $4.9 billion is payable over 18 years to settle economic and other claims made by the five Gulf Coast states. The Louisiana agreement represents more than 20% of bp's outstanding payments to the five Gulf states under the Economic Damages Settlement.
This agreement is expected to accelerate the delivery of bp's commitments and provide the state with access to the funds now, rather than over the next seven years.