The cash will come from the $20 billion (£12.6 billion) trust that BP was forced to set up by President Barack Obama to compensate the US government, local authorities and individuals.
BP chief executive Bob Dudley said: “From the beginning, BP stepped up to meet its obligations to communities in the Gulf Coast region and we’ve worked hard to deliver on that commitment for nearly two years.
“The proposed settlement represents significant progress towards resolving issues from the accident and contributing to restoration efforts.”
The proposed settlement represents significant progress towards resolving issues from the accident and contributing to restoration efforts
A trial to decide who should pay for the 2010 oil spill, due to start on Monday, has been put back after the deal, which was struck between BP and the Plaintiffs’ Steering Committee (PSC).
Judge Carl Barbier said the settlement will “likely result in a realignment of the parties”.
The settlement, which is subject to court approval, removes a large part of the complex litigation and could be a key step towards a deal with BP’s drilling partners and US federal and state governments.
Prior to the deal with the PSC, BP had spent more than $22 billion (£13.9 billion) on compensation and the clean-up operation.