Hopes for settlement rise as trial over BP oil spill is delayed

Feb 27, 2012, 14:58 GMT

London/New Orleans - There were indications Monday that a pre-trial settlement could be reached over the 2010 Gulf of Mexico oil spill after the start of proceedings was postponed by a week to March 5.

In a joint statement issued late Sunday, BP and the Plaintiffs' Steering Committee (PSC) said the eleventh-hour adjournment would allow the two sides more time to continue settlement discussions and attempt to reach an agreement.

The case over the 2010 disaster, in which an explosion caused a BP oil well to gush millions of barrels of crude into the Gulf of Mexico, has been put off until March 5.

Financial news agency Bloomberg, citing people familiar with the talks, said discussions between BP and the plaintiffs about a compensation package of 14 billion dollars were 'nearing completion.'

BP did not comment on the report. In its statement on Sunday, the company said: 'There can be no assurance that these discussions will lead to a settlement agreement. A further announcement will be made as appropriate.'

The delay in the start of the trial came after BP chief executive Bob Dudley said the company was preparing for a trial while leaving itself open to a 'fair settlement.'

The US federal government, several states and various local authorities are suing BP and its associated companies for the damage. BP, in turn, is suing partners including energy giant Haliburton.

The explosion on the Deepwater Horizon Platform in April, 2010, claimed the lives of 11 oil workers and released between 4 and 5 million barrels of crude into the Gulf of Mexico.

Read more about US Justice

Read more about Disasters