British oil giant, BP has said increased its estimate for the total expenditure on providing compensation for the 2010 disaster to £27.7billion.

The company also said that it will appeal $1billion of compensation payments for the disaster after criticising US law firms of trying to cash in on the disaster. About £6.3billion of the total £27.7billion includes claims from people who say that lost money as a result of the oil spill. They are mostly fishermen, hoteliers and restaurant owners in the region.

BP said that it is preparing to battle against US law firms that are simply looking use the company as a cash machine through absurd claims against the company on the oil spill disaster.

Chief executive Bob Dudley said, "No company would agree to a settlement that pays businesses that suffered no losses. We want everyone to know that we are digging in and are well-prepared for the long haul on legal matters."

BP had said in December that it will pay about $7.8 billion to meet the economic and medical claims from more than 100,000 businesses and individuals who were affected by the country's worst offshore oil spill.