The site of the 2010 BP oil spill in the Gulf of Mexico. (Courtesy Creative Commons)

Anadarko had a 25 percent stake in the Macondo well, the site where nearly 5 million barrels of oil were spilled last year, and will transfer its stake back to BP. 

The cash payment will make up part of BP’s $20 billion trust fund being used to pay individuals and businesses with damage claims from the spill.  

Anadarko will no longer pursue its allegations of gross negligence against BP, a boost for the oil company which faces a trial in February in New Orleans to assign liability for the disaster.

 Without this settlement, Anadarko faced the prospect of paying 25 percent of the total cost of cleanup. 

According to BP, the total bill for the spill, including government fines, will be $42 billion, meaning Anadarko would have had to pay considerably more than the agreed $4 billion. 

 “We regard it as favourable for both companies. I am very pleased that they stepped in and are now shouldering some of the responsibilities,” BP Chief Executive Robert W. Dudley said in a statement. “It’s time for the contractors, including Transocean and Halliburton, to do the same.” 

An investigation of the spill concluded that several companies were to blame for the catastrophe. 

BP has sued Transocean, which owned and operated the rig, and Halliburton, the company which was responsible for the cement that capped the well, for neglecting to contribute to compensation payments. 

An onslaught of recriminations and lawsuits arose from the oil spill, with several companies involved in the spill accusing others of negligence. 

Reach reporter Andrea Alonso here or follow on Twitter.