BP to pay record $20.8 bln over Gulf of Mexico oil spill

REUTERS

The amount is significantly higher than a previously announced deal in which BP was set to pay $18.7 billion to resolve claims from U.S. government entities, according to the report.

"This historic resolution is a strong and fitting response to the worst environmental disaster in American history," Lynch said at a press conference.

The spill was sparked by an explosion on the Deepwater Horizon rig, which killed 11 men. A total of 4.9 million barrels of oil is said to have spilt for nearly three months before the shattered well was finally capped.