BP accepts $4bn payment from Anadarko for oil spill clean-up

While BP has given up around $5bn in potentially recoverable costs, the deal also removes a vocal and potentially damaging opponent from the field, thereby potentially reducing the final bill for the United States’ biggest ever offshore oil spill by tens of billions of dollars.

The London-based oil company’s shares jumped on the news. “This is good progress,” remarked one dealer.

BP said yesterday that as part of the deal, Anadarko will no longer pursue its allegations of gross negligence against BP and that the deal excludes possible government fines the parties may have to pay. As a 25 per cent partner in the Macondo well, Anadarko is on the hook for 25 per cent of the costs of cleaning up the spill, compensating those affected, and paying government fines.

It could only avoid this responsibility if it proved BP had been grossly negligent – something which could, potentially, have added around $18bn to the total amount of fines that BP faced.

Fines for leaking oil into US waters are levelled at a level of $1,100 per barrel, or $4,300 if gross negligence is proven.

The US government has said the Macondo well leaked almost five million barrels into the sea.

BP has said the total bill, including government fines, for the oil spill will be $42bn.