BP Seeks To Claw Back Inflated Gulf Of Mexico Claims

Published at 10:31AM - 05/09/15

Oil and gas supermajor BP, is seeking to reclaim some of the money handed to business in the wake of the Gulf of Mexico Deepwater Horizon disaster.

The action stems from a court judgement made in Octeber 2013, in which compensation payments being made to local companies and individuals affected by Deepwater Horizon were found to have been incorrectly calculated. 

The court agreed with BP’s attorneys that the calculation being used at that time was not correctly matching business’ revenues and expenses, resulting in large overpayments.

As part of the hearing, the court ruled that the claims administrator must change the calculation and process which it was using.

BP is now seeking to reclaim money for overpayments made prior to the October 2013 ruling. 

BP’s own attorneys argued at the US appeals court that the overpayments are likely to have run into the hundreds of millions of dollars, with as many as 790 businesses alone being overpaid prior to October 2013.

BP’s latest action goes hand in hand with the money they are also seeking to reclaim for fraudulent and inflated claims by companies and individuals.

The final bill for BP from just local businesses and individuals is expected to be in the region of US$10 billion.

Back in July 2015, BP had finally come to an agreement with local government and authorities of five Gulf of Mexico states resulting in BP paying out US$18.7 billion.

No timetable has been set by the US appeals court, however, no verdict is expected in the near future.