[UPDATE BELOW] BP has tentatively agreed to set aside approximately $20 billion for a fund to pay claims for the Gulf oil spill. The fund will be run by Kenneth Feinberg, who specializes in mediation and dispute resolution. Feinberg served as "special master" for the 9/11 Victim Compensation Fund, as well as cases involving compensation for victims of Agent Orange used in Vietnam, the Times reports.
Feinberg will run the claims process as an independent third party, and according to the preliminary terms of the agreement, BP "will be given several years to deposit the full amount into the fund so it could better manage cash flow, maintain its financial viability and not scare off investors." The company's stock has lost half its value since the oil well exploded on April 20th, and they've already spent $1 billion "dealing" with the catastrophe.
UPDATE:BP announced today that it was canceling dividend payments for the rest of the year, and would decide later whether to restart dividends in 2011. The decision will be an enormous blow to pension funds in the UK, where one of every six dividend dollars paid to pension funds in Britain (10.2 billion a year) comes from BP profits, Commodity Online reports.
After meeting with President Obama and White House officials today, BP Chairman Carl-Henric Svanberg told reporters that those who think BP doesn't care about anything besides profits are just wrong. "We care about the small people," Svanberg said. "[Obama] is frustrated because he cares about the small people, and we care about the small people." Thank you so much for caring, almighty petroleum giant!
