BP Settles Gulf Claims With Transocean, Halliburton – Wall Street Journal

Updated May 20, 2015 6:33 p.m. ET

In a series of legal deals, BP BP 0.60 % PLC agreed to settle its remaining claims with oil-services firms Halliburton Co. HAL -0.22 % and Transocean Ltd. RIG 1.53 % over the 2010 Deepwater Horizon oil spill

The deals don't completely end the long-running courtroom showdown over damages related to the offshore well disaster, which killed 11 workers and led to millions of barrels of crude oil spilling into the Gulf of Mexico. BP's final bill for the spill and its economic and environmental damages remains in the hands of U.S. federal courts.

But the deals effectively end a five-year legal entanglement for Halliburton and Transocean. Both companies said in news releases that they settled all remaining claims with BP and were fully indemnified by BP against future court findings.

London-based BP was the owner of the Macondo well and its employees directed the drilling of the well. Halliburton cemented the well and performed other critical services. Transocean owned and operated the Deepwater Horizon drilling rig.

Transocean, based in Switzerland, will pay $ 212 million to businesses and local governments that brought claims, plus an undetermined amount of attorney's fees. The deal is subject to approval from the U.S. District Court. BP has agreed to pay Transocean $ 125 million to reimburse it for legal fees and has dropped all further claims.

"These settlements provide substantial closure to five years of litigation and we are confident that this agreement can be a significant step forward in our efforts to renew our partnership with BP," Jeremy Thigpen, Transocean's president and chief executive officer, said in a prepared statement.

Separately, Halliburton said it had reached a deal with BP to settle all remaining claims and counterclaims between the companies. The Houston-based oil-field service provider didn't disclose the terms of the deal.

In a statement, BP said it was "pleased to have resolved with Halliburton and Transocean the final remaining disputes stemming from the Deepwater Horizon accident. We have now settled all matters relating to the accident with both our partners in the well and our contractors."

While BP has settled with its contractors, the company still faces court cases related to the economic damages owed local business and governments, as well as a giant pollution fine under the federal Clean Water Act.

Last year, a federal judge presiding over the pollution case said that BP acted recklessly to cut costs and failed to perform critical safety tests. These tests may have let workers know the Macondo well wasn't properly sealed and that BP was at risk of losing control of the well. Then earlier this year, the judge ruled that BP was liable for 3.19 million barrels that leaked into the Gulf. The judge hasn't yet ruled how much BP owes per barrel spilled.

Write to Russell Gold at russell.gold@wsj.com