BP Reaches Settlement with Anadarko Petroleum
BP, the UK oil company shouldered with the lion's share of the blame for the devastating Gulf of Mexico oil spill last year, announced on Monday it has agreed to a deal with Anadarko Petroleum Corp in which the company will pay $4 billion to absolve itself of any liability relating to the Macondo well, in which it held a 25 percent stake. The money will be paid in one lump sum and will be added to the $20 billion trust set up to pay victims of the spill.
Under the terms of the deal, Anadarko's stake in the Macondo well will change hands and will now be owned by BP. The settlement is considered a boost to BP as it prepares for a February trial in New Orleans at which liability over the disaster will be assigned. BP will face higher fines if it's found guilty of gross negligence in the spill, and the Anadarko settlement reduces the likelihood of that happening.
Anadarko and BP have agreed to dismiss claims against each other under the agreement, which will likely pressure the remaining defendants in the case, Halliburton and Transocean, to reach settlements before the trial begins. The Macondo well in the Gulf of Mexico blew out on April 20th, 2010, killing 11 workers on the Deepwater Horizon oil rig and starting the worst oil spill ever, also the worst environmental disaster in US history. The Deepwater Horizon rig was owned by Transocean, while Halliburton supplied the cement for the project.
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