BP Rises From Six-Month Low After Weatherford Payment Deal

BP Plc (BP/) rose from a six-month low after Weatherford International Ltd. agreed to pay the oil company $75 million to cover its liability for any current or future claims related to the Macondo oil spill.

BP jumped 16.1 pence, or 3.7 percent, to 445.7 pence as of the 4:30 p.m. close in London. The stock has fallen 4.3 percent since the beginning of the year, valuing the company at 84.1 billion pounds ($136.5 billion).

The agreement is the second reached by London-based BP in a month with a partner or contractor on the well. Geneva-based Weatherford provided the equipment used when the Macondo well in the Gulf of Mexico exploded. The payment will be added to a $20 billion trust for claims stemming from the biggest offshore U.S. oil spill.

“Weatherford is the first of BP’s contractors to formally agree with BP that the entire industry can and should learn from the Deepwater Horizon incident,” Investec analyst Richard Griffith said in a note to investors today.

Companies including Anadarko Petroleum Corp., Transocean Ltd. and Halliburton Co. are likely to face increased pressure to come to an agreement with BP, he said. The oil company announced an agreement on May 20 in which a unit of Mitsui & Co. would pay $1.07 billion for spill costs related to MOEX Offshore 2007 LLC’s 10 percent stake in Macondo.

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.

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