BP shares slid close to 2% in trading on Tuesday after the oil giant said it would take a charge of around $1.7bn in its fourth quarter 2017 results.
The company announced that it would take the charge as part of the Court Supervised Settlement Program (CSSP) for the Deepwater Horizon class action settlement.
The charge comes from significantly higher claims determinations issued by the CSSP in the fourth quarter.
BP's chief financial officer, Brian Gilvary, said: "With the claims facility's work very nearly done, we now have better visibility into the remaining liability."
"The charge we are taking as a result is fully manageable within our existing financial framework, especially now that we have the company back into balance at $50 per barrel," Gilvary added.
The company anticipates that cash payments related to the Deepwater Horizon will hover around $3bn as opposed to its third-quarter estimate of just over $2bn.