Company agrees to pay BP $75M to settle claims

By the Associated Press | June 20, 2011 | 4:44 PM EDT

NEW ORLEANS (AP) — BP PLC has settled out of court with one of the companies it contracted for work on the Deepwater Horizon rig before a deadly explosion killed 11 workers and spawned last year's massive Gulf oil spill.

The deal announced Monday calls for Weatherford U.S. LP to pay $75 million to BP. In exchange, BP will cover Weatherford for certain claims related to the disaster, including those over pollution damage.

BP says it will apply the money to the $20 billion fund it created to compensate individuals and businesses in the aftermath of the oil spill.

Weatherford made a device designed to help contain the cement at the bottom BP's blown-out well.