The London-based company will record a new $1.7 billion charge in the fourth quarter of 2017 and pay $1 billion of that bill in 2018, it said in a statement Tuesday. The remainder will be distributed over a number of years.

"With the claims facility's work very nearly done, we now have better visibility into the remaining liability," Chief Financial Officer Brian Gilvary said in the statement. "The charge we are taking as a result is fully manageable within our existing financial framework, especially now that we have the company back into balance at $50 per barrel."

The latest charge will cover payments to business owners in the area, BP said. The company's spill-related payouts will rise to $3 billion in 2018 from an earlier estimate of $2 billion, while those for 2017 will remain at $5.5 billion.


The company agreed to settle all claims with the U.S. federal and state governments in a $21 billion agreement in 2015, removing a major chunk of risks related to the deadly accident and allowing Dudley to grow the company again. BP had at that time agreed to make the payments over about two decades, softening the blow on its balance sheet.

The company has said it will pay for the spill with money raised from asset sales. The higher 2018 payout means it will need to raise its divestment program for the year, according to Oswald Clint, an analyst at Sanford C. Bernstein Ltd.

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