September 20, 2010 / 6:34 AM / 9 years ago

BP says oil spill compensation payout rate soars

Fire boat response crews battle the blazing remnants of the off shore oil rig Deepwater Horizon, off Louisiana, in this April 21, 2010, handout file photo. With a final shot of cement, BP Plc permanently "killed" the runaway Macondo well in the Gulf of Mexico that had unleashed the worst oil spill in U.S. history, the top U.S. spill official said on September 19, 2010. The well flowed unchecked for 87 days after an April 20 explosion aboard the Deepwater Horizon rig killed 11 workers and unleashed a torrent of oil that marred the coasts of four Gulf Coast states and spurred a moratorium on all new U.S. offshore drilling. REUTERS/U.S. Coast Guard/Handout

LONDON (Reuters) - BP said payouts to people affected by its Gulf of Mexico oil spill had dramatically increased since it surrendered authority for dispensing funds to an independent administrator.

BP said the Gulf Coast Claims Facility (GCCF), the $20 billion fund it set up to compensate fishermen, hoteliers and retailers whose business was hit by the spill, had paid out 19,000 claims totaling over $240 million.

The total cost of the spill response has hit $9.5 billion, Europe’s second-largest oil company by market value said in a statement late on Sunday.

The GCCF is run by lawyer Kenneth Feinberg, formerly the Obama Administration’s executive pay Czar. BP said on September 3 that the fund had paid out $38.5 million since it began operating on August 23. This represented a rate of around $3.5 million per day, broadly in line with the rate at which BP had previously been disbursing funds.

Since September 3, the amount of money being paid out has risen to an average of over $12.5 million.

Just over a week ago, Bob Dudley, who will take over as BP’s Chief Executive on October 1, told analysts that he expected the $20 billion fund to more than cover the total valid claims for compensation.

Reporting by Tom Bergin; Editing by Will Waterman

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