Cameron International Corporation (NYSE: CAM) said today that they have reached an agreement with BP to settle all claims between the two companies relating to the Deepwater Horizon disaster in the Gulf of Mexico.
Under the terms of agreement, Cameron, who manufactured the BOP for the Deepwater Horizon, agrees to pay $250 million to BP and, in return, BP will indemnify Cameron from all claims, including environmental, relating to the incident.
“This agreement with BP is the right action, as it removes uncertainty facing Cameron in the litigation associated with the Deepwater Horizon event,” Cameron Chairman and CEO Jack Moore said.
“This eliminates all significant exposure to historical and future claims related to this incident. Though this agreement does not provide indemnification against fines and penalties, punitive damages or certain other potential non-compensatory claims, we do not consider these items to represent a significant risk to Cameron.”
Cameron is the fourth company to reach a deal with BP as a result of the Deepwater Horizon disaster. Experts say that the settlement will likely lessen future charges against BP.