BP announced Dec. 16 that it has reached agreement with Cameron International Corporation, the designer and manufacturer of the Deepwater Horizon blowout preventer, to settle all claims between the companies related to the Deepwater Horizon accident and spill.
Under the settlement agreement, Cameron will pay BP $250 million. BP says it will immediately apply the payment to the $20 billion trust it established to meet individual, business and government claims, as well as the cost of the natural resource damages.
BP and Cameron have agreed to mutual releases of potential claims against each other, and BP has agreed to indemnify Cameron for compensatory claims resulting from the accident, including claims brought relating to pollution damage stemming from the accident or any damage to natural resources. BP’s indemnity excludes civil, criminal or administrative fines and penalties, claims for punitive damages, and certain other claims. BP and Cameron will discontinue claims against each other in the Multi-District Litigation pending in New Orleans.
“Today’s settlement allows BP and Cameron to put our legal issues behind us and move forward to improve drilling in the safety industry,” said Bob Dudley, BP group chief executive, in a prepared statement.
BP and Cameron each acknowledge that the Deepwater Horizon accident resulted from complex and interlinked causes involving multiple parties, BP says. They agree that the entire industry can and should learn from the accident in order to improve safety in the drilling industry by developing, among other things, standard specifications for blowout preventers and other drill-through equipment.
Cameron is the fourth company to settle with BP. This agreement follows settlements by BP with MOEX and Anadarko, BP’s partners in the Macondo well, and Weatherford, the maker of the float collar used at the well. To date, BP has paid out approximately $7.5 billion to individuals, businesses and government entities.