Anadarko will pay BP $4bn and BP will apply the payment to the $20bn trust it established that is available to meet individual, business and government claims, as well as the cost of the natural resource damages.
Anadarko will also transfer all of its 25% interest in the MC252 (Macondo) prospect to BP.
As part of the settlement agreement, Anadarko will no longer pursue its allegations of gross negligence with respect to BP.
The companies have agreed to work cooperatively with respect to indemnified claims, and Anadarko has the opportunity for a 12.5% participation in future recoveries from third parties or insurance proceeds cumulatively exceeding $1.5bn, up to a total cap of $1bn.
BP chief executive Bob Dudley said this settlement represents a positive resolution of a significant uncertainty and it resolves the issues among all the leaseholders of the Macondo well.
"There is clear progress with parties stepping forward to meet their obligations and help fund the economic and environmental restoration of the Gulf. It’s time for the contractors, including Transocean and Halliburton, to do the same," Dudley said.
