5 Mar 2012

US govt still pursuing BP

6:58 am on 5 March 2012

The US government says it will continue its case against BP over the Deepwater Horizon oil rig disaster, despite the company reaching a deal with the largest group of private claimants.

The Department of Justice says the $US7.8 billion deal does not address significant damages to the environment after the leak in the Gulf of Mexico.

The deal will benefit some 100,000 fishermen, residents and clean-up workers whose livelihoods or health suffered during the 2010 spill, but the company has not admitted liability and still faces other legal claims.

BP says it expects the money to come from a $US20 billion compensation fund it previously set aside.

State governments in the Gulf and drilling firms are amongst others expected to continue legal action against BP.

The explosion in April 2010 killed 11 men and caused 4 million barrels of oil to leak into the Gulf.