Alabama Attorney General Luther Strange announced Thursday that BP has agreed to pay the state of Alabama $1 billion in economic damages and approximately $1 billion in natural resource damages and federal penalty monies to resolve the state’s claims arising from the 2010 Gulf oil spill.

“As part of an $18.5 billion global settlement announced today, BP has agreed to pay the state of Alabama $1 billion in economic damages from the April 2010 Gulf oil spill,” Strange said. “This is a major victory for the people of Alabama who will benefit for years to come.”

Strange joined Gov. Robert Bentley in making the announcement Thursday morning. The $1 billion economic settlement funds will be deposited in the state’s general fund over the next 18 years.

The precise allocation of these payments to the general fund will be determined at a future date, as will the state’s receipt of approximately $1 billion in settlement monies for natural resource damages and federal penalties.