BP on Tuesday announced its intention to take $10 billion in US tax write-offs related to the cost for response and cleanup of the Gulf oil catastrophe.
The oil giant penciled in losses of $32.2 billion for its second quarter earnings statement. These include $2.9 billion for its response so far and $29.3 billion in future estimated costs that the company says will cover all further damages associated with the spill.
BP will be able to write off $10 billion in US taxes based on the claimed loss. It will also be able to write off an undetermined amount from taxes owed to the United Kingdom, where it is based.
Included in the future costs is the $20 billion BP must provide to the Independent Claims Facility escrow fund established by the Obama administration. It has yet to provide the fund with any money, “claims czar” Kenneth Feinberg admitted this week.
The $20 billion for the claims facility—“neither a floor nor a ceiling” according to the White House—is to be paid by BP in installments for the next four years.