AP source: Gov’t negotiations with BP completed to ensure compensation from $20 billion

AP source: Negotiations completed for $20B fund

WASHINGTON — A Justice Department official says negotiations with BP have been completed to ensure that the oil company follows through on a commitment to establish a $20 billion compensation fund for victims of the Gulf oil spill.

The official calls the conclusion of negotiations an important step forward for BP to honor the promises it made regarding the fund.

Speaking on condition of anonymity about the arrangements that will be announced later Monday, the official says the Obama administration looks forward to completing a security agreement with BP so that all necessary funds will be there.

The security agreement is necessary in case something were to happen to a company subsidiary that established the trust.