BP (NYSE:BP) said they'll back up their $20 billion claims fund by using assets in the Gulf of Mexico as collateral. The fund is being used to pay for legitimate claims from damage arising from the oil spill.
Included in the collateral are oil and gas production at a variety of Gulf projects, including Mad Dog, Thunder Horse, Atlantis, Great White, Na Kika, Mars and Ursa.
The above include royalty interest in the oil and gas production.
Lamar McKay, chairman and president of BP America Inc. and BP's Gulf Coast Restoration Organization, said, "The pledging of these assets underscores our commitments to the trust which we set up to pay all legitimate claims arising from the tragedy."
The fund is expected to continue paying out over a four-year period to claimants.
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