BP agrees to pay $1bn for oil spill restoration

BP Plc agreed to $1 billion to help restore areas damaged by its oil spill, which spewed 4.9 million barrels of crude into the Gulf of Mexico for three months last year.

The US Justice Department, which helped negotiate the deal, called it a “first step toward fulfilling BP’s obligation” to repair damage to natural resources. The money will be used to replenish beaches, barrier islands and damaged wetlands and for efforts to conserve ocean habitats.

“We believe the early restoration projects to be funded through this agreement represent the best way forward in restoring the Gulf,” Lamar McKay, president of BP America Inc, said.