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Halliburton Agrees to Settle Gulf Oil Spill Claims

FILE - In this June 26, 2010 photo, oil from the Deepwater Horizon oil spill is seen floating on the surface of the water in Bay Jimmy in Plaquemines Parish, La.

Halliburton has agreed to pay $1.1 billion to settle a portion of the claims arising from BP’s Gulf of Mexico oil spill in 2010.

The oil services giant said Tuesday the settlement is pending court approval and would be paid into a trust in three installments over the next two years.

The money would be paid out to the victims of BP’s Deepwater Horizon oil spill, which followed an explosion that sunk the drilling platform. The accident killed 11 workers and triggered the largest offshore oil spill in U.S. history.

Halliburton was BP’s cement contractor on the leased oil drill rig in the Gulf of Mexico.

Rig contractor Transocean Ltd, which employed nine of the workers killed, agreed to pay a $1.4 billion settlement last year, while BP has paid about $28 billion.

The settlement includes claims assigned to Halliburton as a result of BP’s settlement in 2012 and punitive damages from the loss property or commercial fishing activity resulting from the oil spill.

Halliburton has blamed BP's decisions to save 'time and money'' for the blowout that led to the spilling of 4.9 million barrels of oil into the sea.

Shares of Halliburton on the New York Stock Exchange appeared to trade up on the news.