BP has settled cross claims related to the 2010 Deepwater Horizon oil spill with oilfield services provider Halliburton Co. and contract driller Transocean Ltd. According to an Insurance Journal report, BP still faces a potential fine of up to $13.7 billion under the U.S. Clean Water Act. Transocean, which owned the Deepwater Horizon rig, had settled its Clean Water Act liability for $1 billion. The U.S. government never sued Halliburton under the Act.
Transocean stated that BP would pay the company $125 million in compensation for legal fees it incurred, adding the companies will mutually release all claims against each other. The company added BP will also discontinue its attempts to recover as an “additional insured” under Transocean’s liability policies that will accelerate the company’s recovery of about $538 million in insurance claims. Transocean is also set to establish a $212 million to a fund set up to pay out claims to people and businesses harmed by the spill, subject to the approval by U.S. District Court for the Eastern District of Louisiana.
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