LONDON ( TheStreet) -- Anadarko Petroleum ( APC - Get Report) agreed to pay BP ( BP - Get Report) $4 billion to settle all claims from the Gulf of Mexico oil spill in April 2010.

Under the agreement, Anadarko, which held a 25% stake in the damaged Macondo well, will transfer the stake to BP.

BP, in a statement Monday, said it would apply the payment to its $20 billion fund that was established to meet individual, business and government claims.

Under the settlement, Anadarko has the opportunity to recover 12.5%, or up to $1 billion, from future recoveries from third parties or insurance proceeds exceeding $1.5 billion, BP said.

"This settlement represents a positive resolution of a significant uncertainty and it resolves the issues among all the leaseholders of the Macondo well," said Bob Dudley, BP CEO, in a statement. "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 ( RIG - Get Report) and Halliburton ( HAL - Get Report), to do the same."

BP is still involved in suits with Transocean and Halliburton over the Gulf of Mexico disaster. Last month, BP announced a settlement with MOEX Offshore 2007 LLC, which owned 10% of the well.

-- Written by Joseph Woelfel

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