The settlement, which includes legal fees, is subject to approval by the US District Court for the Eastern District of Louisiana.
The amount, to be paid in three installments over the next two years, will be put into a trust until all appeals are resolved, the company said.
Halliburton, North Americas top oilfield services provider, had set aside $1.3 billion for costs related to the incident.
The Macondo accident spilled 4.9 million barrels of oil into the sea, according to the US government, and killed 11 workers.
Rig contractor Transocean, which employed nine of the workers killed, agreed to pay $1.4 billion in settlement last year, while BP has paid about $28 billion so far.
Halliburton provided cementing services for BP at the Macondo drilling operation, including the placement of centralizers that help stabilize the well bore during cementing. Halliburton had earlier blamed BP's decision to use only six centralizers, to save time and money , for the blowout.
Halliburtons shares were up slightly at $67.92 in morning trade on the New York Stock Exchange.