Anadarko Petroleum Co., the 25-per cent owner in the Macondo well in the Gulf of Mexico, has agreed to pay $4 billion to BP to settle all claims over last year's blow out that became the worst oil spill in the US history.
Under an out-of-court settlement, Woodlands, Texas-based Anadarko will pay the UK oil major $4 billion and will no longer pursue claims of gross negligence against BP.
The deal excludes any government fines which may still have to be paid.
The agreement includes an opportunity for Anadarko to recover 12.5 per cent, or up to $1 billion, from further recoveries in excess of $1.5 billion from third parties or insurance, BP said in a statement.
BP has said the total bill for the spill could be $42 billion, and it has already reached a $1.1-billion settlement with another partner, Mitsui & Co, and also Weatherford, which provided drilling equipment for the Deepwater Horizon.
BP will put the $4 billion to the $20-billion trust it established last year to meet individual, business and government claims, as well as the cost of the natural resource damages. (See: BP agrees to $20 billion fund for oil spill claims: report) Anadarko will also transfer all of its 25 per cent interest in the Macondo well lease to BP.