BP's compensation fund has just $300m left
BP's compensation fund that it set up to pay claims related to the Gulf of Mexico oil spill is running out of cash.
The oil giant announced that the fund, which originally had $20bn, has just $300m left.
The deadline for business to claim loss of earnings due to the spill is not until April next year.
BP put $1.4bn aside in its second quarter to cover the costs of claims.
BP says once the fund runs out, further claims will come straight out of future profits.
The company also said that it remains in a legal dispute over a court interpretation of the settlement agreement which was signed in the wake of the 2010 Deepwater Horizon disaster.
BP said the agreement allows businesses in the US to make claims for losses that don't actually exist.
The extra $1.4bn charge weighed heavily on BP's second quarter figures, with adjusted net profit for the quarter down 25% at $2.71 billion, compared with the same period a year ago.
Russian costsA higher tax bill in Russia and a stronger US dollar also dented earnings.
The second quarter numbers also included a contribution from the company's stake in the Russian oil producer, Rosneft, for the first time.
BP acquired a 19.75% stake in Rosneft, which is controlled by the Russian government, partly in exchange for its 50% share of the oil group TNK-BP.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23499856#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
