BP Settlement: Oil Company Gets $250 Million From Company That Made Faulty Blowout Preventer

CP     First Posted: 12/16/11 06:47 AM ET   Updated: 12/16/11 04:18 PM ET

NEW ORLEANS - BP PLC says it will be paid $250 million by the maker of the blowout preventer that failed to halt oil spewing from BP's busted well in the Gulf of Mexico.

Under the agreement announced Friday, BP and Cameron International Corp. will drop all claims against one another. BP says the money will be deposited into the $20 billion fund set up to compensate victims of the April 2010 spill.

BP said the agreement was not an admission of liability by either party.

The settlement comes in advance of a federal trial over the spill.

The non-jury trial is set to begin in February and determine fault in the explosion of the BP-leased rig Deepwater Horizon off the Louisiana coast. The oil spill was the nation's worst offshore oil disaster.

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Exposed marsh grass roots are seen in an oil-impacted area of marshland in Bay Jimmy near the Louisiana coast Friday, Oct. 29, 2010. There is no comprehensive calculation for how much marshland was oiled by the Deepwater Horizon oil spill, but estimates range from less than a square mile to a handful of square miles. Regardless, Louisiana loses roughly 25 square miles of marsh each year due to a host of environmental and manmade causes. The state is the site of one of the most ferocious rates of land loss in the world. (AP Photo/Patrick Semansky)
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