BP Prudhoe Bay enters $29.5 million settlement with BP Exploration

BP Prudhoe Bay enters $29.5M settlement deal

NEW YORK — BP Prudhoe Bay Royalty Trust said Tuesday it entered into a $29.5 million settlement agreement with BP Exploration (Alaska) Inc., a unit of British oil company BP PLC.

BP Exploration will pay the $29.5 million to the trust.

The settlement, signed May 8, is related to production cuts at the Prudhoe Bay oil field in Alaska following oil spills on March 2, 2006, and August 6, 2006, BP Prudhoe said.

Shares of BP Prudhoe Bay closed up 45 cents at $69.82 in the regular session before the announcement.