The energy giant has agreed to pay $4.525 billion in penalties to the U.S. Government.
A total of $4 billion of the penalties will resolve criminal charges and an additional $525 million will resolve claims brought by the Securities and Exchange Commission (S.E.C.).
The fine comes on top of $20 billion that the company has agreed to pay into a trust fund to meet damage claims from the spill.
The spill came after an explosion on B.P.'s Deepwater Horizon rig in April 2010.
A total of 11 workers died in the explosion, and the ensuing spill is considered one of the worst in history.
B.P.'s settlement is subject to federal judicial review.