Shipping companies reach $96.5 million settlement with Amplify Energy over 2021 oil spill

March 1 (UPI) -- The companies associated with two shipping vessels will pay a settlement of $96.5 million to Amplify Energy over a 2021 oil spill off the coast of Southern California.

Amplify Energy announced the settlement Wednesday after one of its pipelines was significantly broken and torn from its original location, spilling about 144,000 gallons of oil about 5 miles from Huntington Beach.

The corporate entities affiliated with the MSC Danit and COSCO Beijing will pay the settlement after their anchors allegedly dragged across the ocean floor, causing damage to the pipeline. The Dordellas Finance Corp. based in Panama and Capetanissa Maritime Corp. based in Greece have been accused of allowing their ships to drag their anchors months before the incident happened, the Los Angeles Times reported.

"The resolution of Amplify's claims against the vessels and their affiliated entities concludes our involvement in the litigation related to the 2021 pipeline incident, which has demanded considerable focus and allocation of Company resources," Martyn Willsher, Amplify's president and CEO, said in a statement.

"We are eager to move forward and turn the page on this unfortunate and preventable event and to dedicate all of our attention to operations at Beta, our business as a whole and the strategic direction of the company."

The parties involved are still working out additional non-monetary terms of the settlement.

Amplify Energy Corp. stock rose 18% on Wednesday following the announcement of the settlement.

The full settlement details have not been disclosed.