Deepwater Horizon: Anadarko settles with BP

BP has reached a $4bn (£2.5bn) settlement with a former partner in its Deepwater Horizon oil rig over claims related to last year's deadly explosion and oil spill at the offshore drilling platform.

Anadarko Petroleum's payment will form part of BP's $20bn compensation trust fund, set up to compensate victims and help pay for the clean-up after the fatal fire that killed 11 people and led to the largest oil spill in US history. Anadarko also agreed to drop its gross negligence claims against BP.

Texas-based Anadarko held a 25% stake in the Macondo well and has agreed to hand that to BP in return for a share of any funds BP recovers from third parties or insurance.

The settlement follows other agreements with Deepwater partners. In May, BP announced an agreement with MOEX Offshore 2007, a unit of Japan's Mitsui which owned 10% of the well. It agreed to pay BP $1bn. The following month Weatherford International, a Switzerland-based contractor that supplied parts to the rig, agreed to pay $75m to the trust fund to settle claims between itself and BP.

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