BP gets £4bn in Gulf settlement

Oil industry giant BP has recovered $4 billion (£ 2.5 billion) following a settlement of costs linked to last year's Deepwater Horizon accident.

BP announced today (October 17th) that it had reached the agreement with the Anadarko Petroleum Company to settle all claims between the two firms related to the devastating oil spill last spring, with the US group also agreeing to transfer its 25 per cent stake in the affected Macondo well to the oil industry firm.

"This settlement represents a positive resolution of a significant uncertainty and it resolves the issues among all the leaseholders of the Macondo well," BP chief executive Bob Dudley said in the statement.

"There is clear progress with parties stepping forward to meet their obligations and help fund the economic and environmental restoration of the Gulf," he added.

Anadarko has also agreed to drop its gross negligence claims against BP.

The $4 billion will go towards the $20 billion trust BP has set up to meet claims made against it following the spill, which claimed the lives of a number of rig workers.