Transocean Ltd. said Thursday it agreed to pay $1.4 billion and plead guilty to one misdemeanor violation of the Clean Water Act as part of a civil and criminal settlement with the U.S. Department of Justice over the 2010 Deepwater Horizon explosion that killed 11 workers and caused the largest offshore oil spill in U.S. history.
Transocean, which operates in Houston but keeps its corporate headquarters in Zug, Switzerland, said it’ll satisfy its payment obligations over a period of five years with cash on hand and cash flow from operations.
“These important agreements…remove much of the uncertainty associated with the accident,” Transocean said.
Transocean was drilling the Macondo well for BP when the accident took place.
Shares of Transocean closed Thursday’s trading session up 6.4% at $49.20.