Oil services provider Weatherford , which provided equipment used in the Macondo well, has agreed to pay BP $75 million toward the cost of the Gulf of Mexico oil spill.

BP has agreed to indemnify Weatherford in relation to economic claims from people affected from the spill and environmental damage.

The settlement - the second BP has reached with parties involved in the well - leaves Weatherford exposed to possible government fines and punitive damages.

Japanese trading house Mitsui agreed to pay $1.1 billion in May and BP has said it was working to ensure other partners in the well - including Anadarko, Transocean and Halliburton - also contributed to clean-up costs.

Reuters