Anadarko settles with BP on costs related to gulf spill
Anadarko, which originally blamed BP for the oil spill that happened in the Gulf of Mexico, reached a $4 billion settlement with the London-based oil energy company. Bloomberg reports that this amount is more than many analysts had originally expected. These market experts previously predicted that Anadarko might attempt to settle for less than $3 billion.
Earlier, the company would not consider settling, according to the Houston Chronicle. Anadarko alleged that the "gross negligence" of BP caused of the spill.
Now that the company has switched gears, it plans to utilize $5 billion in credit to pay BP the settlement within 45 days, Bloomberg reports. Anadarko plans to sell its interest in Brazilian offshore blocks, which could raise an estimated $3 billion to $5 billion.
"With the uncertainties surrounding Macondo largely removed, investors can now re-focus on the world-class deep- water exploration program and dominant onshore position in North America" John Lutz, an analyst at Frost Investment Advisors LLC in San Antonio, stated in an e-mail, according to the media outlet.
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