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BP settles claims with Weatherford over Deepwater Horizon

Oilfield Technology,

BP today announced that it has reached agreement with Weatherford U.S., L.P. to settle potential claims between the companies related to the Deepwater Horizon accident.

BP has already settled with MOEX USA Corporation, the parent company of MOEX Offshore 2007, which will pay BP US$ 1.065 billion. BP will immediately apply the payment to the US$ 20 billion trust it established to pay for damages.

Weatherford has become the second party in the last month to join BP in acknowledging findings by the Presidential Commission that the Deepwater Horizon incident was the product of complex causes involving multiple parties. Weatherford is the first of BP's contractors to formally agree with BP that the entire industry can and should learn from the Deepwater Horizon incident.

Under the settlement and indemnity agreement, Weatherford, which manufactured the float collar used in the well, will pay BP US$ 75 million. BP will immediately apply the payment to the US$ 20 billion trust it established to meet individual, business and government claims, as well as the cost of the Natural Resource Damages.

"This settlement allows BP and Weatherford to put our legal issues behind us and move forward together in strengthening processes and procedures, safety, and best practices in offshore drilling," said BP America Chairman and President Lamar McKay. He added, "We are gratified that in the wake of the reports issued by the Presidential Commission and the United States Coast Guard, some of the companies involved in the Macondo well have stepped forward to recognize the findings of those investigations and help to fund the economic and environmental restoration of the Gulf."

BP is working to ensure that the other parties involved in the Macondo well - notably, Transocean, which owned and operated the Deepwater Horizon rig; Halliburton, which designed and pumped the unstable cement that the Presidential Commission found was a key cause of the accident; and Anadarko, which owned 25% of the project – contribute appropriately. To date, BP has paid more than US$ 6 billion in claims.

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