NEW ORLEANS (AP) — A BP PLC contractor has agreed to pay the British oil giant $75 million to settle all potential claims between the companies over last year's deadly rig explosion and the massive oil spill it spawned in the Gulf of Mexico.
In exchange for the payment, BP has agreed to cover Weatherford U.S. LP for compensatory claims related to the disaster, including those over environmental damage and economic losses. Civil and criminal fines and penalties and claims for punitive damages aren't covered by the indemnity agreement.
Weatherford said its insurance policies will cover the entire $75 million payment.
BP said in Monday's announcement that it will apply the money to the $20 billion fund it created to compensate individuals and businesses after the Deepwater Horizon rig exploded, killing 11 workers.
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