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 said: “We expect that, in the third quarter, the remaining amount for items covered by the trust will be fully utilised and additional amounts will be charged to the income statement.”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s