Cameron Announces Agreement with BP; Will Pay $250 to BP
Cameron (NYSE: CAM) today announced an agreement with BP whereby BP will indemnify Cameron for current and future compensatory claims against Cameron associated with the Deepwater Horizon incident.
Under the terms of agreement, Cameron agrees to pay $250 million to BP, and both parties have agreed to mutually release claims against each other. In addition, BP will fully indemnify Cameron for damage claims arising under the Oil Pollution Act, claims for natural resource damages and associated damage-assessment costs, and other claims arising from third parties.
The Company's insurers are expected to fund not less than $170 million of this agreement. The Company expects to take a charge in the fourth quarter for any amounts not covered by insurance.
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