BP Pledges Assets For $20 Billion Oil-Spill Trust (BP)

BP Plc (NYSE: BP) announced that it was pledging certain Gulf of Mexico oil assets as collateral for the $20 billion Oil Spill Trust, which it establishing in order to pay claims associated with its Macondo well spill.

The collateral comprises of an overriding royalty interest in BP's oil and gas production.

Lamar McKay, Chairman and President of BP America, said, "The pledging of these assets underscores our commitments to the trust which we set up to pay all legitimate claims arising from the tragedy."

The oil giant said the cost of the response till now totals $11.2 billion. In addition, it said that over 86,000 people and companies have submitted claims so far. Of these claims, more than 44,000 had been paid, totalling over $806 million.

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