EANS-Adhoc: Weatherford Settles With BP Any Claims Between the Companies Related to the Macondo Litigation, Reaches Indemnity Agreement With BP

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20.06.2011

GENEVA, June 20, 2011 -- Weatherford International Ltd. (NYSE /
Euronext Paris / SIX: WFT) today announced that its U.S. subsidiary
has reached agreement with BP to settle any claims that may have
arisen between the companies relating to the Deepwater Horizon
incident and oil spill. Under the settlement, BP will indemnify
Weatherford for current and future compensatory claims resulting from
the incident and the impacts from that event. Under the agreement,
BP will indemnify Weatherford for environmental, pollution, personal,
business, property and economic loss claims. The two companies have
agreed to work with each other to improve the safety of offshore
drilling.

(Logo: http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO)

"We are extremely pleased to have reached an amicable resolution with
BP, a valued customer, that gives our shareholders finality with
respect to the vast majority of any potential exposure Weatherford
might have from last year's incident in the Gulf," said Bernard J.
Duroc-Danner, President and CEO of Weatherford. "Weatherford is
particularly pleased that, as part of our continued commitment to the
environment and worker safety, the settlement includes opportunities
for us to partner with BP to improve offshore drilling operations."

Weatherford provided products and services to BP for the Macondo oil
well. Today's settlement between Weatherford and BP is not an
admission of liability by any party.

The entire cost of this settlement is being funded under insurance
policies that Weatherford had in place at the time of the incident.
As part of the settlement, Weatherford will provide $75 million to BP
to be applied to the Gulf Coast recovery fund established for
residents, businesses and others claiming injury or damage from the
oil spill.

Further, Weatherford believes that any types of liability not
included in BP's indemnification obligation, if assessed against
Weatherford, will also be covered under its liability insurance
policies. These include any damages assessed against Weatherford
related to non-BP employees injured on the Deepwater Horizon rig and
any non-compensatory damages that might be assessed against
Weatherford. BP's indemnification obligation also does not include
civil or criminal fines and penalties and attorneys' fees.

Weatherford is a Swiss-based, multi-national oilfield service
company. It is one of the largest global providers of innovative
mechanical solutions, technology and services for the drilling and
production sectors of the oil and gas industry. Weatherford operates
in more than 100 countries and employs more than 55,000 people
worldwide.

Contacts: Andrew P. Becnel
Chief Financial Officer
+41-22-816-1502

Karen David-Green
Vice President - Investor Relations
+1-713-693-2530

Christine Mathers - Media inquiries
Corporate Communications Manager
+1-713-297-2689

SOURCE Weatherford International Ltd.

Further inquiry note:
Andrew P. Becnel, Chief Financial Officer, +41.22.816.1502; Karen David-Green,
Vice President - Investor Relations, +1.713.693.2530; Christine Mathers - Media
inquiries, Corporate Communications Manager, +1.713.297.2689

end of announcement euro adhoc
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issuer: Weatherford International Ltd.
Rue Jean-Francois Bartholoni 4-6
CH-1204 Geneva
phone: +41.22.816.1500
FAX: +41.22.816.1599
mail: karen.david-green@weatherford.com
WWW: http://www.weatherford.com
sector: Oil & Gas - Upstream activities
ISIN: CH0038838394
indexes:
stockmarkets: stock market: Euronext Paris, New York, Main Standard: SIX Swiss
Exchange
language: English