Oil giant BP has agreed to pay £12bn to settle the Deepwater Horizon oil spill case, ending years of litigation over the environmental damage and casualties.
The settlement, one of the largest in American history, will include all US federal, state and local claims related to the 2010 Gulf of Mexico disaster and will be paid over an 18-year period.
"Five years ago we committed to restore the Gulf economy and environment and we have worked ever since to deliver on that promise,” said BP chairman Carl-Henric Svanberg.
"We have made significant progress, and with this agreement we provide a path to closure for BP and the Gulf. It resolves the company's largest remaining legal exposures, provides clarity on costs and creates certainty of payment for all parties involved."
BP said this agreement would add around £6.4bn to the £28.1bn of charges BP had already set against the disaster.
The oil giant added that the rough breakdown of the new agreement will see it pay £3.5bn to the US Government under the Clean Water Act over the next 15 years.
It will also pay £4.5bn to five Gulf states including Alabama, Florida, Louisiana, Mississippi and Texas over the next 15 years to cover natural resource damages and will pay a further £3.1bn to the five Gulf states to settle economic and other claims.
Finally, BP will pay up to £640m to resolve claims made by more than 400 local government bodies. It said the first of these payments is due to begin in around 12 months.
BP chief executive Bob Dudley said: "This is a realistic outcome which provides clarity and certainty for all parties.
"For BP, this agreement will resolve the largest liabilities remaining from the tragic accident and enable BP to focus on safely delivering the energy the world needs.
"For the United States and the Gulf in particular, this agreement will deliver a significant income stream over many years for further restoration of natural resources and for losses related to the spill."