Mitsui agrees to share costs of Gulf of Mexico oil spill with BP

British oil and gas giant BP Plc yesterday said that one of its Macondo well partners Moex Offshore 2007, a unit of Mitsui & Co, has agreed to pay $1.065 billion to cover all claims between the two companies related to the Gulf of Mexico oil spill.

The Japanese company, holding a 10 per cent stake in the Macondo well, has agreed to pay $1.065 billion, nearly ten months after BP put $20 billion in a escrow account to pay legitimate claims arising from the world's worst oil spill. (See: BP agrees to $20 billion fund for oil spill claims: report)

The accidental explosion that occurred on 20 April 2010 on BP's Deepwater Horizon rig caused the spillage of approximately 4.9 million barrels of crude oil into the Gulf of Mexico resulting in colossal damage to the environment and inhabitants of the region.

The other partner in the Macondo well is Anadarko Petroleum Corp, with a 25 per cent stake.

Under the settlement, Moex USA, the parent company of MOEX Offshore 2007, will pay BP $1.065 billion. BP said it would immediately put this money to the $20 billion trust it established to meet individual, business and government claims, as well as the cost of the natural resource damages.

Both companies have also agreed to mutual release of claims against each other. BP has agreed to indemnify MOEX for compensatory claims arising from the accident.
BP had sued Mitsui and Anadarko in order to share the costs of the oil spill and Mitsui would have to pay more than $2 billion of the $40 billion estimated spill costs and claims.