12132017Headline:

Houston, Texas

HomeTexasHouston

Email Scott Kappes
Scott Kappes
Scott Kappes
Contributor • (866) 529-2400

Anadarko Agrees to $4 Billion Settlement with BP

Comments Off

Anadarko Petroleum has agreed to pay $4 billion to BP to settle claims related to the Deepwater Horizon accident and Gulf oil spill. As part of the settlement Anadarko also relinquishes its 25 percent stake in the well to BP. This settlement along with last week’s government citations of both Transocean and Halliburton are providing more foundation for BP’s claim that they are not solely responsible for the disaster. See the Washington Post story here.

BP previously reached a $1 billion settlement agreement with the other partner in the well, MOEX who owned a 10 percent stake.

BP says that the $4 billion from Anadarko will make up a portion of the $20 billion fund the company has established to pay claims related to the spill. So far the fund has paid out over $7 billion.

BP has made provisions for up to $42 billion in costs from the blow out, which the company plans to raise through the sale of assets. BP has already announced at least 15 sales that are part of the asset disposal program.

A massive dispute has surfaced in recently months about whether contractors, such as Transocean and Halliburton among others, are liable for damages associated with the accident which left 11 workers dead and the subsequent oil spill.

Contractors argue that they should not be held liable, while BP argues that the contractors should shoulder some of the load, and it appears that others are beginning to side with BP.

It is still unclear just how all of it will play out, but if recent settlements and actions are any indication, it does not look like the contractors will be getting out of this unscathed.