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BP may soon reach deal on oil spill

BP Plc, operator of the Macondo well that caused the worst oil spill in the United States, may reach a settlement for the disaster this week after a partner agreed on fines, an Oppenheimer & Co. analyst said.

BP Plc, operator of the Macondo well that caused the worst oil spill in the United States, may reach a settlement for the disaster this week after a partner agreed on fines, an Oppenheimer & Co. analyst said.

Mitsui & Co.'s MOEX Offshore 2007 L.L.C. will pay $90 million to the United States and five states to settle pollution violations related to 2010 spill. While BP will probably have to accept different terms as the operator, the settlement suggests that BP would pay $585 million for violations, less than 20 percent of what the company has provisioned, said Fadel Gheit, an analyst at Oppenheimer in New York. BP rose to the highest in London in more than a year.

"This is only the civil part and does not include possible criminal charges and penalties," Gheit said in an e-mailed response to questions. "The trials will begin later this month, and all parties are eager to settle before then. So there could be very important decisions this week."

BP shares remain 24 percent below their level in London before the spill and the company has claimed about $40 billion in charges to cover the costs of litigation and cleanup. Chief Executive Officer Bob Dudley said Feb. 7 that the company would like to reach a settlement if the terms are right.

Shares rose 2.1 percent to 499.25 pence in London, the highest close since Jan. 19, 2011. BP's U.S.-traded shares rose 2 percent after the MOEX announcement on Feb. 17, which came when trading in London had closed.

BP had a 65 percent interest in the Macondo well, MOEX had 10 percent and Anadarko Petroleum Corp. had a 25 percent stake. The settlement suggests that Anadarko will be liable for about $225 million in Clean Water Act fines if the terms are the same, Gheit said.

The settlement is the first of what may be a series of agreements with the U.S. as lawsuits over the 2010 spill approach a trial set for Feb. 27.

The U.S. Justice Department sued MOEX, BP, Anadarko and Transocean Ltd., which owned the rig that exploded, in December 2010, seeking fines for each barrel of oil discharged.