Washington: President Barack Obama says BP has agreed to set aside US$20 billion to pay victims of its Gulf of Mexico oil well blowout that has created the worst environmental calamity in American history.
BP's chairman apologized for the spreading catastrophe, and said he was suspending the company's quarterly dividend as part of its commitment to the claims process.
Obama said the US$20 billion did not represent a cap on the British-based BP's liability but rather a fund that becomes immediately available to pay the financial claims of Gulf coast residents and businesses.
The president spoke largely without emotion as he announced BP's agreement. The oil geyser that continues spewing crude oil into the Gulf has been a major distraction for a president battling determined political opposition.