Anadarko Settlement With BP

Anadarko Petroleum Corporation, USA, today announced an agreement with BP to settle all of BP's current and future claims against Anadarko associated with the Deepwater Horizon event. BP has committed to use the funds to pay the claims of individuals and entities affected by the Deepwater Horizon event.  

 

Under the terms of the settlement agreement, Anadarko agrees to pay USD4.0 billion to BP, and both parties have agreed to mutually release claims against each other. As part of this agreement, BP will release its claims against Anadarko for approximately USD6.1 billion of outstanding invoices received to date, as well as to forego reimbursement for any future costs related to the event. BP also will fully indemnify Anadarko for damage claims arising under the Oil Pollution Act, claims for natural resource damages and associated damage-assessment costs, and any claims arising under the relevant Joint Operating Agreement. Anadarko will transfer its 25% interest in Mississippi Canyon block 252 (Macondo) to BP.

 

The deal removes significant uncertainty regarding future liabilities and associated risks for Anadarko.

 

According to its public filings, BP has recorded a charge in excess of USD40 billion for total estimated costs associated with the event. To date, BP has invoiced Anadarko an aggregate of USD6.1 billion for what BP considers to be Anadarko's 25% proportionate share of BP's actual and near-term costs.