ANADARKO PETROLEUM CO has agreed to pay $4 billion to BP PLC as part of a settlement related to last year’s Gulf of Mexico oil spill.
BP said that Anadarko’s payment will form part of its $20 billion trust fund, which has paid out $7 billion so far to settle claims from individuals and businesses.
The spill at the Gulf of Mexico ocurred after the Deepwater Horizon oil rig, owned by Transocean Ltd, burst into flames after drilling a well for BP PLC on 20 April 2011.
Eleven workers were killed and their bodies were never recovered. Over the next 85 days, 206 million gallons of oil flowed from the well into the Gulf of Mexico.
Anadarko held a 25 percent share in the Macondo well, and is also handing over its stake in it to BP as part of the settlement.
The agreement also gives Anadarko a potential share in funds which BP recovers from third parties or insurance.
If BP’s total recovery exceeds $1.5 billion, Anadarko would get 12.5 percent of the excess, or up to $1 billion.
In May, MOEX Offshore 2007 LLC, which owned 10 percent of the well, agreed to pay BP $1 billion.
Weatherford International Inc, a contractor based in Switzerland, agreed in June to pay $75 million to the trust fund to settle claims between it and BP.
“This settlement represents a positive resolution of a significant uncertainty and it resolves the issues among all the leaseholders of the Macondo well,” said BP Chief Executive Bob Dudley.
There is clear progress with parties stepping forward to meet their obligations and help fund the economic and environmental restoration of the Gulf. It’s time for the contractors, including Transocean and Halliburton, to do the same.
BP is still embroiled in suits and countersuits with Transocean Ltd, operator of the Deepwater Horizon drilling rig, and Halliburton Co, which was responsible for cementing the well, which will go to trial in February.
Last week it was announced that BP and two other companies involved in the accident could face fines of up to $45million after being formally sanctioned.
The US Bureau of Safety and Environmental Enforcement cited the three firms over 15 violations, ranging from failing to safeguard health to not keeping the well under control.
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