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BP May Offer $30 Billion to Settle Gulf Oil Spill Claims

NEW YORK ( TheStreet) -- BP (BP - Get Report) may end up having to pay out more than $30 billion to resolve its legal battles with the Department of Justice and civil claimants regarding the Gulf of Mexico oil spill, according to a report.

As the cost estimates of claims and fines BP will have to pay continues to climb, Reuters now reports that the British oil giant may end up having to pay out roughly $20 billion above what it had previously budgeted for.

Furthermore, BP may now be pressured into prompt pay-out in the wake of the latest government report looking into the culprits behind the devastating Gulf of Mexico oil spill.

Although the second major government probe spreads the blame for the tragic Gulf of Mexico oil spill between BP, Transocean (RIG - Get Report) and Halliburton (HAL - Get Report), the report points the finger at BP for fatal management mistakes.

Reuters sources say BP likely now cringes at the thought of facing the Justice Department and civil claimants in court, with Reuters quoting an insider saying, "we would like everything settled as soon as we can, otherwise you have lingering reputation issues and investor uncertainty."

The insider that Reuters cites says that BP is likely to make a "significant" offer soon after its February trial date for the civil hearings.

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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