Anadarko to Pay BP $4 Billion to Settle Gulf Spill Claims

LONDON ( TheStreet) -- Anadarko Petroleum ( APC) agreed to pay BP ( BP) $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) and Halliburton ( HAL), 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

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to: tips@thestreet.com.

Copyright 2011 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More from Stocks

Burger King Issues Apology After Massive World Cup Promotional Fail

Burger King Issues Apology After Massive World Cup Promotional Fail

The Winners and Losers in Thursday's Market

The Winners and Losers in Thursday's Market

Stocks Tumble as Dow Heads for Eighth Straight Drop

Stocks Tumble as Dow Heads for Eighth Straight Drop

Starbucks Stock Is Still Plunging

Starbucks Stock Is Still Plunging

Tesla Received Tip That Former Employee Was Going to 'Shoot the Place Up'

Tesla Received Tip That Former Employee Was Going to 'Shoot the Place Up'