BP coughs up $20bn for spill fund

A little poorer: BP agrees to set spill funds in escrow.

AP PHOTO/GERALD HERBERT

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By Noah Brenner & Anthony Guegel

 16 June 2010 00:25 GMT

BP has agreed to set aside $20 billion in an escrow account to fund oil spill clean up and compensation payments after talks with the Obama administration Wednesday.



The fund will be administered by Kenneth Feinberg, the same person that managed a fund to help victims of the 11 September terrorist attacks, according to news reports.



Burning

UK supermajor BP said today that oil and gas is flowing through a second containment system attached to the Deepwater Horizon rig’s failed blow out preventer in the US Gulf of Mexico.

“This second system supplements the lower marine riser package cap containment system, which remains in operation,” said BP.

However, the company warned that neither of the two systems…

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