Sources have told The Times of London that British petroleum giant BP is placing $2.4 billion in an escrow account to cover liabilities in the Gulf of Mexico.

The funds would come from a suspension of second-quarter dividend payments, which would continue until the company can get a clear assessment on the costs of the Deepwater Horizon oil spill in the gulf, which began April 20 with a deadly oil rig explosion and has become the largest oil spill disaster in U. S. history.

Chief Executive Officer Tony Hayward said, "We are considering all options on the dividend. But no decision has been made."

Sources said, however, the company plans to announce a suspension of second-quarter dividends July 27 and further dividend suspensions are possible.

The newspaper further said that for Britain, the impact of BP's plan would be an enormous blow to pension funds. One of every six dividend dollars paid to pension funds in Britain, about $10.2 billion a year, comes from BP profits.

In part, the plan is meant to convince the public BP has the resources to deal with disaster. Wary investors have fled BP. Its share values have dropped to 14-year lows.

The Times also noted that since April, BP has lost more than a third of its market value. (With Inputs from Agencies)