Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Anadarko to pay $4B to BP to settle all Deepwater Horizon claims

Reprints

HOUSTON—Anadarko Petroleum Corp. will pay BP P.L.C. $4 billion to settle all claims related to the Deepwater Horizon oil rig disaster.

The agreement, announced Monday, calls for BP to drop claims of around $6.1 billion on outstanding invoices and to forego reimbursement for any future costs related to the 2010 explosion and fire that claimed 11 lives and destroyed the rig in the Gulf of Mexico.

In return, BP will indemnify Houston-based Anadarko for claims filed against it under the Oil Pollution Act, claims for damage to natural resources and various other claims, Anadarko said in a statement.

"This settlement agreement with BP is the right action for our stakeholders, as it removes significant uncertainty regarding future liabilities and associated risks," Anadarko CEO Jim Hackett said in the statement.

"Though the agreement does not provide indemnification against fines and penalties, punitive damages or certain other potential claims, we do not consider these items to represent a significant financial risk to Anadarko,” Mr. Hackett said. “This confidence stems from recent court decisions that released Anadarko from punitive damages and personal injury claims, combined with the findings of various investigations that have confirmed the company had no direct involvement in the drilling of the Macondo well."

Anadarko said it plans to fund the payment to BP with cash and funds from a $5 billion credit facility. The oil company said it expects to receive more than $163 million from insurers.

A federal investigation blamed the disaster on a series of risk management failures.