UPDATE 1-Cameron Intl reaches agreement with BP on oil spill

Fri Dec 16, 2011 2:01am EST

Dec 16 (Reuters) - Cameron International Corp said BP Plc had agreed to indemnify the company for current and future compensatory claims associated with the Deepwater Horizon incident.

As part of the deal, Cameron said it had agreed to pay $250 million to BP.

Cameron said the company's insurers are expected to fund not less than $170 million of this agreement and both parties have agreed to mutually release claims against each other.

Cameron expects to take a charge in the fourth quarter for any amounts not covered by insurance.