The deal between BP and more than 120,000 victims of the spill " from shrimp boat captains to sales teams at time-share condos, restaurateurs and wedding planners " settles what is arguably the most complicated part of the legal proceedings.

But it will not be universally welcomed in the Gulf, where there is a strong undercurrent of opinion that wants to see BP held to account in court in addition to offering financial compensation

BP announced adjusted profit after tax equivalent to 18.2 billion euros for 2011, as higher oil prices offset a drop in production, according to a group statement.

The London-listed energy major also signalled its recovery by hiking its shareholder dividend for the first time since the devastating April 2010 spillage that ravaged the company's fortunes.

BP had suffered a net loss of $4.9 billion in 2010 after an explosion on the BP-leased Deepwater Horizon rig killed 11 workers, sent millions of barrels of oil spewing into the sea and left it with huge compensation costs.

Including changes in the value of BP's energy inventories, net profit hit $25.7 billion in 2011, the group added Tuesday.

"BP is on the right path," the company's chief executive Bob Dudley said in the earnings release.

"2012 will be a year of increasing investment and milestones as we build on the foundations laid last year."

BP said that it had committed $1.0 billion "for the early restoration of natural resources following the Deepwater Horizon accident in 2010."

It added that by the end of 2011 it had paid more than $7.8 billion to meet claims and government payments, while $15.1 billion had been paid into the trust fund used to compensate victims of the oil spill disaster.

The British company and its partners are set to face a trial beginning February 27 in New Orleans that consolidates a host of lawsuits seeking damages for economic losses, injury claims and environmental violations.

The trial also aims to resolve competing claims of liability among BP and its subcontractors, rig operator Transocean and Halliburton, which was responsible for faulty cement work on the Macondo well, whose leak triggered the oil spill.

Commenting on the upcoming case, Dudley said on Tuesday: "As I have said before, we are prepared to settle if we can do so on fair and reasonable terms, but equally, if this is not possible, we are preparing vigorously for trial."
BP has already booked a $40 billion charge to cover cleanup efforts,
compensation to fishermen and thousands of others affected by the spill and massive government fines and penalties that are still being assessed.
To meet its costs, BP has committed to selling $38 billion worth of assets before the end of 2013 and has so far clawed back roughly half the amount.
snip -

Didn't seem to set them back all that much

It's tough to compensate Mother Nature...