Jun. 21, 2011 (UPI NewsTrack) --
WASHINGTON, June 21 (UPI) -- A $75 million settlement between BP and oilfield service company Weatherford allows both companies to focus on safer offshore drilling, BP said.
BP announced that Weatherford agreed to pay $75 million to settle potential claims tied to last year's oil spill in the Gulf of Mexico.
Weatherford built the float collar used on the failed Macondo well on the floor of the Gulf of Mexico. The collar is used to help contain cement at the bottom of the well.
The process used to cement the Macondo well was blamed in part for the series of malfunctions that led to a deadly explosion that led to one of the worst oil spills in the history of the industry.
"This settlement allows BP and Weatherford to put our legal issues behind us and move forward together in strengthening processes and procedures, safety, and best practices in offshore drilling," BP America Chairman and President Lamar McKay said in a statement.
BP added that it was working with Deepwater Horizon rig operator Transocean; Halliburton (NYSE:HAL) , which was responsible for the cement; and Anadarko, a co-owner of the project, to make sure they contributed appropriately.
BP added it would apply the Weatherford settlement to the $20 billion trust fund set up in response to the oil spill.