BP shares up amid £2.5bn oil spill deal

BP shares rose sharply today after it announced it will receive 4 billion US dollars (£2.5 billion) in a settlement with one of its partners at the site of last year's Gulf of Mexico disaster.

US petroleum firm Anadarko held a 25% share in the Macondo well which blew out in April last year, causing the largest oil spill in US history.

BP said that the money will be put into the 20 billion US dollars (£12.6 billion) trust fund set up to settle claims from the incident. Texas-based Anadarko is also handing over its stake in the well to BP.

The UK oil firm, which saw its share rise by 5% today, said the settlement was not an admission of liability by either party.

It has previously announced settlements with MOEX, which had a 10% interest in the Macondo well, and Weatherford, which provided drilling equipment. BP said it was also pressing other parties, including contractors Halliburton and Transocean, to "contribute appropriately".

Chief executive Bob Dudley said: "There is clear progress with parties stepping forward to meet their obligations and help fund the economic and environmental restoration of the Gulf. It's time for the contractors, including Transocean and Halliburton, to do the same."

Evolution Securities analyst Richard Griffith said the ultimate cost to BP from the oil spill could fall below 20 billion US dollars (£12.6 billion).

He added: "BP's shares continue to reflect a much larger cost in spite of growing evidence the bill will be lower."