Report: BP Putting $20 Billion Aside For Paying Oil Spill Victims

As reported late last week, British Petroleum had set an early estimate of $14 billion for payouts to workers and businesses crippled by the oil spill in the Gulf of Mexico. But a new report claims that BP has set aside a higher total of $20 billion for this reason.

According to the Associated Press, the fund will managed independent from BP by lawyer Kenneth Feinberg, who had the unenviable task of managing payouts to families of the 9/11 attacks.

Though BP has said it will begin expediting claims from businesses and Gulf workers, no date has been given for when the first payments would be made.

It is not known if the fund comes solely from BP’s coffers or if others involved in the disaster — Transocean Ltd., Anadarko Petroleum — are contributing or will contribute.

AP sources: In White House deal, BP to back $20 billion fund to pay oil spill victims’ claims [Chicago Tribune]