# BP and Louisiana Agree to $350 Million Early Payment, Ending Coastal Lawsuits

> BP will pay Louisiana about $350 million in a single early payment, replacing seven years of Deepwater Horizon economic damages installments and ending coastal suits.

- Published: 2026-10-23T17:28:24+00:00
- Section: Legal & Disputes
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-23/bp-louisiana-deepwater-horizon-settlement
- Source: [PR Newswire](https://www.prnewswire.com/news-releases/bp-and-the-state-of-louisiana-agree-to-resolve-long-standing-matters-and-open-a-new-chapter-302918333.html)

## Key takeaways

- BP will make a single early payment of approximately $350 million to Louisiana, replacing $373 million due in equal installments over seven years.
- The agreement resolves the remaining coastal zone lawsuits brought by Louisiana parishes to which BP is a party.
- The payment represents more than 20% of BP's outstanding payments to the five Gulf states under the 2015 Economic Damages Settlement.

BP and the State of Louisiana agreed to resolve two long-standing Deepwater Horizon legacy matters, with BP making a single early payment of approximately $350 million to the state, [PR Newswire](https://www.prnewswire.com/news-releases/bp-and-the-state-of-louisiana-agree-to-resolve-long-standing-matters-and-open-a-new-chapter-302918333.html) reported on October 23, 2026. The agreement was signed by Governor Jeff Landry, Attorney General Liz Murrill and BP chief executive officer Meg O'Neill.

## Louisiana's $350 Million Early Payment

Under the agreement, [BP p.l.c.](https://akta.pro/company-profiles/000031j/bp-p-l-c) will bring forward its remaining payments to Louisiana under the 2015 Deepwater Horizon Economic Damages Settlement into a single early payment of approximately $350 million. The existing schedule called for remaining payments of $373 million to Louisiana in equal installments with no interest over the next seven years. The agreement replaces those installments with the single payment.

The remaining coastal zone lawsuits brought by Louisiana parishes to which BP is a party will be resolved, bringing long-running litigation to a close. The Louisiana agreement represents more than 20% of BP's outstanding payments to the five Gulf states under the Economic Damages Settlement.

In 2015, BP reached agreements to settle federal, state and local government claims arising from the 2010 Deepwater Horizon accident for up to $18.7 billion, with payments spread over 18 years. The settlement was approved by a federal court in April 2016. Under the settlement, $4.9 billion is payable over 18 years to settle economic and other claims made by the five Gulf Coast states.

Meg O'Neill, BP chief executive officer, said: "We will never forget the 11 men who lost their lives, or the impact on their families, communities and the environment across the Gulf Coast. Deepwater Horizon was a tragedy that forever changed bp, and the lessons we learned continue to guide how we operate today. This agreement with Louisiana accelerates the delivery of our commitments and provides the state with access to these funds now. I would like to thank Governor Jeff Landry and Attorney General Liz Murrill for their leadership in reaching this agreement."

Orlando Alvarez, chairman and president of BP America, said Louisiana is home to more than 800 BP employees. In 2025, the company spent $590 million with Louisiana vendors and paid more than $280 million in royalties and property and franchise taxes in the state.

## Other Legal Actions in the Sector

The Buffalo Water Board filed a lawsuit against over a dozen chemical and firefighting foam companies in Erie County State Supreme Court, alleging PFAS contamination from fire training and response activities, [Yahoo](https://www.yahoo.com/news/us/articles/buffalo-water-board-files-lawsuit-203627758.html) reported on October 16, 2026. Brazilian prosecutors filed a US$108 million lawsuit against Shell's Brazilian subsidiary over deadly 2024 floods in Rio Grande do Sul, [NST Online](https://www.nst.com.my/business/corporate/2026/10/1552098/brazil-prosecutors-sue-shell-us108mil-over-deadly-2024-floods) reported on October 9, 2026.

## What Comes Next for BP and Louisiana

BP's Gulf of America annual payment schedule sets out the expected pre-tax cash flow for the remaining government settlements. The agreement replaces Louisiana's remaining Economic Damages Settlement installments with the single early payment.

## Companies in this story

- Louisiana · website: https://www.la.gov
- [BP p.l.c. company profile](https://akta.pro/company-profiles/000031j/bp-p-l-c) · website: https://www.bp.com

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