Of the penalties, $4 billion will resolve criminal charges and an additional $525 million will be paid to resolve claims brought by the Securities and Exchange Commission.
The settlement is subject to federal judicial review. Attorney General Eric Holder was set to make the government announcement of the settlement in New Orleans later Thursday.
"All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident as well as the impact of the spill on the Gulf coast region," said Bob Dudley, BP (BP)'s CEO, in a statement. "From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf."
"We apologize for our role in the accident, and as today's resolution with the U.S. government further reflects, we have accepted responsibility for our actions," Dudley added.
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. It said it expects to pay a final $860 million into that fund this quarter.