Halliburton pays $1.1 billion for role in Gulf of Mexico oil spill

Halliburton has agreed to pay more than $1 billion dollars in damages for its role in the BP Deepwater Horizon oil spill in the Gulf of Mexico, the worst oil spill in U.S. history, the effects of which are still being felt today.

Bloomberg reports that the Halliburton settlement totals $1.1 billion dollars.The settlement resolves a number of lawsuits filed against the company by residents of the Gulf Coast that had claimed that Halliburton's operations on the Deepwater Horizon oil rig were flawed. BP and the oil rig's owner, Transocean, of Vernier Switzerland, have also been the subject of litigation.

Oil flowed into the Gulf of Mexico from the Macondo well beneath the Deepwater Horizon for nearly 3 months. The U.S. government has estimated that at least 4.2 billion barrels of oil leaked into the ocean before a cap was placed on top of the well. BP claims that around half that much oil leaked into the gulf.

Halliburton's settlement comes shortly before a federal judge will decide on the scale of the disaster and BP's culpability in the catastrophe.

Bloomberg reports that U.S. District Judge Carl Barbier is currently deliberating on whether the government's or BP's estimation of oil spilled is correct. He will also rule whether BP was guilty of gross negligence that caused the Deepwater Horizon to catch fire and explode.

If Judge Barbier rules that BP was guilty of gross negligence, they could face fines of up to $18 billion dollars under the Clean Water Act should Barbier also accept the government's estimate of oil spilled. A gross negligence ruling would also open BP up to other litigation from people who did not receive part of a previous settlement for $9 billion.

If Barbier accepts BP's estimate and finds them innocent of gross negligence, BP would have to pay $2.7 billion.