Oil giant BP has agreed to pay $20bn to settle claims with the US stemming from the company's Deepwater Horizon oil spill. An explosion on BP's deep-water drill, off the coast of Louisiana in 2010 killed 11 workers.
Millions of barrels of oil were spilled into the surrounding waters. The ensuing spill took 87 days to stop. BP says the deal gives it certainty over what it must pay.
The spill affected the shorelines of five states- Texas, Louisiana, Mississippi, Alabama and Florida- crippling the ecosystems and local economies.
BP spokesman Geoff Morrell said the deal gives BP certainty with respect to its financial obligations.
The settlement is the largest the US government has ever reached with a single company. It requires court approval to be finalized.
In July, the Department of Justice and BP announced an agreement for $18.7bn. This newest figure includes some payment BP has already made.
The money will be used by the US government and the effected states to handle environmental and economic damages.
This historic resolution is a strong and fitting response to the worst environmental disaster in American history, said US Attorney General Loretta Lynch at a press conference on Monday.
The deal settles the largest legal claims pending against BP for the Deepwater Horizon spill.