Bank of America Merrill Lynch analysts have issued a new, thorough report on BP and the cost of the Deepwater Horizon explosion, which they say will cost BP at least $28 billion.
The analysts assume cleanup and remediation costs based on industry data and BP’s
costs to date could reasonably be $6 billion, the Business Insider reported.
Compensatory damages are expected to tally $11 billion. Punitive damages add another $11 billion.
Civil damages applied under the Clean Water Act may be about $1.1 billion, the Business Insider reported.
Earlier this month, BP said the cost of the company's response to the oil spill has reached about $1.25 billion. BP said that figure doesn't include $360 million for a project to build six sand berms meant to protect Louisiana's wetlands from spreading oil.
Meanwhile, BP will set aside $20 billion to pay the victims of the massive oil spill in the Gulf, senior administration officials said, a move made under pressure by the White House as the company copes with causing the worst environmental disaster in U.S. history.
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