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Company Agrees to Pay BP $75 Million to Settle Claims

May 2010 FILE:  An aerial view of oil being burned from the Deepwater Horizon incident.

May 2010 FILE: An aerial view of oil being burned from the Deepwater Horizon incident.  (EPA)

BP PLC has settled out of court with one of the companies it contracted for work on the Deepwater Horizon rig before a deadly explosion killed 11 workers and spawned last year's massive Gulf oil spill.

The deal announced Monday calls for Weatherford U.S. LP to pay $75 million to BP in exchange for BP indemnifying Weatherford for certain claims related to the disaster, including those over pollution damage.

BP says it will apply the money to the $20 billion fund it created to compensate individuals and businesses in the aftermath of the oil spill.

Weatherford manufactured a device that was designed to help contain the cement at the bottom BP's blown-out well.