BP jumps 4.5% on $18.7bn Deepwater spill settlement

BP shares have jumped after the oil giant agreed to pay $18.7bn worth of federal and state claims, to be spread over 18 years, for the Deepwater Horizon oil spill in 2010.

The oil major's shares rose 4.5% to 438p in afternoon trading after announcing details of a settlement figure lower than some had feared. BP will pay a $5.5bn Clean Water Penalty Act fee over a period of 15 years, below the $13bn sought by the US government. A cumulative $13bn charge to settle federal, state and local government claims, meanwhile, constitutes just over a third of the total claim value filed by such bodies. Payments will begin around one year from the final agreement and will be around $1.1bn a year for the majority of the payment period. BP chief predicts oi...