BP deal removes liability from oil industry for Louisiana barrier

The construction of six barrier islands to protect Louisiana against the Gulf of Mexico spill will not increase the oil industry's exposure to liability, it has been revealed.

BP has agreed with the US government to fund the construction of the islands, on the understanding that it will not be held responsible for any consequences of the initiative.

As a result, it is putting $360 million (£245 million) into the construction, but the oil industry's liability is further limited by the fact that BP is not to be directly involved in the construction of the barrier.

The oil brand is also paying to preserve the tourism industry of four affected states of the US south-eastern coastline.

Among them are Louisiana, Florida, Mississippi and Alabama, which are to share $170 million to cover the cost of counteracting the negative publicity associated with the spill.

Operations since the leak began have focused jointly on preventing further oil from escaping from the failed Deepwater Horizon rig and on pumping away the slick that has already formed in the area.