BP said Monday it has made an initial deposit of $3 billion into a $20 billion fund to pay for its Gulf of Mexico oil spill after the oil company finalized negotiations with the U.S. Department of Justice.
BP set up the fund to compensate victims of the oil spill under intense pressure from President Barack Obama.
“We have made clear that the company still needs to ensure that the necessary funds will be available if something happens to the subsidiary that established the trust and we look forward to completion of an appropriate security arrangement in the near future,” Associate Attorney General Tom Perrelli said in a statement.
BP said it will put an additional $2 billion into the account in the fourth quarter of 2010. After that, $1.5 billion will be deposited per quarter until a total of $20 billion is reached, the British oil company said.
Citigroup Inc will serve as the corporate trustee and paying agent for the account, BP said.
