BP oil spill cleanup costs hit $8bn

The cost to BP of cleaning up the Gulf of Mexico oil spill has hit $8bn (£5bn).

The Deepwater Horizon disaster has cost $2bn in the last month alone. BP has paid out a total of 127,00 claims by individuals and businesses, costing $399m, of which £38.5m has been paid out since 23 August when the lawsuits were put in the hands of the Gulf Coast Claims Facility.

BP's engineers have performed pressure tests which indicate a cement plug put in place has been enough to stop the leak, the group says.

Since 15 July, no new oil has flowed into the Gulf, BP adds.

In June BP said it would suspend its dividend for at least the rest of the year to cover the costs of the cleanup operation.