Occidental Petroleum Corp. has agreed to pay $180 million in compensation to victims' families and survivors of the Piper Alpha oil rig disaster.

Lawyers for the families of 126 of the 167 people killed and for 50 of the 62 survivors of the July 6 fire in the North Sea said they will urge their clients to accept Tuesday's offer from the Piper platform's U.S. owner. A source close to the negotiations said the average payment would be $1.08 million for each family.