Anadarko Agrees to Pay $4 Billion for Deepwater Oil Spill

October 17 00:00 2011

New York, October 17 ( – British oil major BP Plc said in a statement Monday that Anadarko Petroleum Company has agreed to pay $4 billion as a settlement of all claims regarding last year’s Deepwater Horizon oil spill in the Gulf of Mexico. BP will use this amount as part of the $20 billion trust that it has set up to cover the costs of compensation and clean up following the above accident.

Anadarko will also transfer the 25% interest it continues to hold in the Macondo prospect over to BP. Bob Dudley, BP’s chief executive said, “This settlement represents a positive resolution of a significant uncertainty and it resolves the issues among all the leaseholders of the Macondo well.” He added that the other contractors, Transocean Ltd. and Halliburton Co. should also come forward to fulfill their obligations to fund the economic restoration of the Gulf.

Anadarko will no longer pursue allegations of gross negligence against BP and the payment of $4 billion will be made in a single cash payment. BP said that the agreement with Anadarko is not an admission of liability.

The accident and spills had brought hundreds of lawsuits against BP and its partners and contractors including multiple claims by vessel captains, residents and others exposed to chemicals and oil during the cleanup.