UK Energy Secretary: BP Deal Shows Company Acting Responsibly

16th Jun 2010 22:08

LONDON (Dow Jones)--BP PLC's (BP) agreement to set up a $20 billion fund to pay for damages related to the Gulf of Mexico oil spill shows that the oil major is taking the disaster seriously, U.K. Secretary of State for Energy and Climate Change Chris Huhne said Wednesday. "I welcome the agreement reached between BP and the U.S. administration. This demonstrates BP takes its environmental responsibilities seriously and is ensuring that those affected by the spill are compensated," Huhne said in a statement. BP earlier said it would cancel at least $7.8 billion in dividends, sell off $10 billion in assets and reduce capital expenditure as it looks to build up the fund over the next 3 1/2 years to pay for damages related to the Gulf of Mexico oil spill. BP struck the agreement with President Barack Obama at the White House amid intense political pressure spurred by a steady stream of oil spewing into the Gulf and washing up on beaches and marshes. -By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347; [email protected] (END) Dow Jones Newswires June 16, 2010 17:08 ET (21:08 GMT)