BP oil spill costs surge over 6 billion

Oil giant BP said Friday the cost of its Gulf of Mexico oil spill had reached over six billion euros as figures spiral to cover the cost of containment, drilling and compensation for those affected by the disaster. BP estimates the final cost of the clear-up will reach about 25 billion euros.

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The struggling oil company says no new oil has flowed from the damaged well in the Gulf of Mexico where engineers have been working around the clock to finally seal the ruptured well.

BP said on Friday it had agreed to set up a 15-billion-euro compensation fund for residents affected by the spill.

So far, the company says it has paid out about 310 million euros to those affected, including many fishermen who have seen their livelihoods destroyed since the 20 April explosion that killed eleven workers.

The overall extent of the damage to the environment has yet to be fully established.

The US government, however, confirms that the Deepwater Horizon disaster is the biggest ever accidental release of oil into the oceans.