BP settles with another Macondo partner

21st Jun 2011 07:51

BP has tied up another loose end relating to disputes over who should carry the can for the Deepwater Horizon tragedy in the Gulf of Mexico last year by coming to a settlement with US contractor Weatherford.BP and Weatherford have agreed to mutual releases of potential claims against each other, and BP has agreed to indemnify Weatherford for compensatory claims resulting from the accident, including claims brought relating to pollution damage stemming from the accident. BP's indemnity excludes civil, criminal or administrative fines and penalties, claims for punitive damages, and certain other claims. The agreement is not an admission of liability by any party regarding the accident, a statement issued in the US Monday night said.Under the settlement and indemnity agreement, Weatherford, which manufactured the float collar used in the well, will pay BP $75m. BP will immediately apply the payment to the $20bn trust it established to meet individual, business and government claims, as well as the cost of the Natural Resource Damages.Weatherford is the second party in the last month to join BP in acknowledging findings by the Presidential Commission that the Deepwater Horizon incident was the product of complex causes involving multiple parties.BP said it is striving to ensure that the other parties involved in the Macondo well, notably Transocean, Halliburton and Anadarko, contribute appropriately.Transocean owned and operated the Deepwater Horizon rig, and Halliburton, designed and pumped the unstable cement that the Presidential Commission found was a key cause of the accident, while Anadarko owned 25% of the project.- --jh