BP (NYSE:BP) Fund May Need Only Half to Pay Claims

BP (NYSE:BP) fund administrator Kenneth Feinberg said the $20 billion facility may only need about $10 billion to compensate the economic loss of victims of the oil spill in the Gulf of Mexico.

While Feinberg added it is too early to project exact amounts, he feels about $10 billion will be close to taking care of the liabilities.

He's not talking about lawsuits, fines or other payouts, only the economic effect of the spill on individuals and businesses, who the fund was set up to compensate, along with remediation and cleanup costs.

Feinberg stated on Bloomberg television: “It remains to be seen, but I would hope that half that money would be more than enough to pay all the claims.”

So far the fund has paid out close to $2.7 billion to over 170,000 claimants, the majority in temporary payments to cover emergency needs.

Individuals received $5,000 and businesses $25,000.