By Joseph Woelfel
LONDON (TheStreet) -- Anadarko Petroleum agreed to pay BP $4 billion to settle all claims from the Gulf of Mexico oil spill in April 2010.
Under the agreement, Anadarko, which held a 25% stake in the damaged Macondo well, will transfer the stake to BP.
BP, in a statement Monday, said it would apply the payment to its $20 billion fund that was established to meet individual, business and government claims.
Under the settlement, Anadarko has the opportunity to recover 12.5%, or up to $1 billion, from future recoveries from third parties or insurance proceeds exceeding $1.5 billion, BP said.
"This settlement represents a positive resolution of a significant uncertainty and it resolves the issues among all the leaseholders of the Macondo well," said Bob Dudley, BP CEO, in a statement. "There is clear progress with parties stepping forward to meet their obligations and help fund the economic and environmental restoration of the Gulf. It's time for the contractors, including Transocean and Halliburton, to do the same."
BP is still involved in suits with Transocean and Halliburton over the Gulf of Mexico disaster. Last month, BP announced a settlement with MOEX Offshore 2007 LLC, which owned 10% of the well.