Oil services firms Halliburton and Transocean reached agreements with oil and gas giant British Petroleum to settle their claims related to the Gulf of Mexico oil spill disaster.

Transocean said it has reached an agreement with BP, under which the oil company will indemnify Transocean for compensatory damages, including natural resource damages. Meanwhile, Transocean will indemnify BP for personal and bodily injury claims of Transocean employees and claims relating to any future cleanup or removal of diesel or other pollutants stored on the Deepwater Horizon.

Under the agreement, which is not subject to court approval, BP and Transocean will mutually release all claims each has against the other.

BP will also discontinue its attempts to recover as an "additional insured" under Transocean's liability policies that will accelerate the company's recovery of about $538m (£347m, €484m) in insurance proceeds. BP will also pay Transocean $125m in compensation for legal fees it incurred.

Transocean separately reached an agreement with the Plaintiffs' Steering Committee. As per the settlement, Transocean will pay two classes of plaintiffs, represented by the committee, a total of about $212m, and their litigation expenses.

"These settlements provide substantial closure to five years of litigation and we are confident that this agreement can be a significant step forward in our efforts to renew our partnership with BP," said Jeremy Thigpen, president and CEO of Transocean.

Halliburton agreement

Halliburton separately said it has reached an agreement with BP to dismiss all court claims against each other over the Deepwater Horizon well incident.

"We are pleased to have reached an amicable resolution with BP, our valued customer, that allows us to close another chapter in the Deepwater Horizon case for Halliburton," said Dave Lesar, chairman and CEO of Halliburton.

"This agreement allows Halliburton to strengthen its relationship with BP by negotiating a global master services agreement between the companies."

In 2010, the Deepwater Horizon oil rig exploded in the BP-owned Macondo Prospect, which spilled oil into the surrounding Gulf of Mexico waters over a three-month period. Eleven workers on the rig died in the explosion and swathes of marine life were poisoned.

BP has been hit by a number of pieces of civil and criminal litigation from people and businesses affected by the spill. Two phases of the trial over BP's negligence and the amount of oil spill have been completed. The company faces a potential fine of up to $13.7bn under the US Clean Water Act.

At the end of 2014, the company booked charges totalling $43.5bn in connection with the Gulf of Mexico oil spill. An additional charge of $477m was taken in the fourth quarter of 2014 reflecting increased provision for litigation costs, additional business economic loss claims and other costs.

Transocean, which owned the Deepwater Horizon rig, had settled its Clean Water Act liability for $1bn. Halliburton, which did the cementing work for BP's well, earlier reached a $1.1bn settlement for a majority of claims related to its role in the oil spill.

"We are pleased to have resolved with Halliburton and Transocean the final remaining disputes stemming from the Deepwater Horizon accident. We have now settled all matters relating to the accident with both our partners in the well and our contractors," said Geoff Morrell, BP's senior vice president of US communications and external affairs.