BP estimates it will pay 7.8 billion dollars (£4.8 billion) to resolve more than 100,000 claims by businesses and individuals from America's worst offshore oil spill. The settlement has no cap and the company could end up paying more or less.
US District Judge Carl Barbier approved the settlement in a 125-page ruling. "None of the objections, whether filed on the objections docket or elsewhere, have shown the settlement to be anything other than fair, reasonable, and adequate," he wrote.
The April 2010 blowout of BP's Macondo well triggered an explosion that killed 11 rig workers and spilled more than 200 million gallons of oil into the Gulf.
Judge Barbier has not ruled on a medical settlement for clean-up workers and others who say exposure to oil or dispersants made them sick - only on economic and property damage claims.
As part of the settlement, BP will pay 2.3 billion dollars (£1.4 billion) to cover seafood-related claims by commercial fishing vessel owners, captains and deckhands. That fund is the settlement's only limit, the judge noted.
After he gave preliminary approval in May, thousands of people opted out of the settlement to pursue their cases individually.
Still unresolved are environmental damage claims brought by the US government and Gulf Coast states against BP and its partners on the Deepwater Horizon drilling rig and claims against Switzerland-based rig owner Transocean and Houston, Texas-based cement contractor Halliburton.
A trial next year is designed to identify causes of BP's well blowout and assign percentages of fault to the companies involved in the disaster.