By Russell Gold
In a series of legal deals, BP PLC agreed to settle its
remaining claims with oil-services firms Halliburton Co. and
Transocean Ltd. over the 2010 Deepwater Horizon oil spill
The deals don't completely end the long-running courtroom
showdown over damages related to the offshore well disaster, which
killed 11 workers and led to millions of barrels of crude oil
spilling into the Gulf of Mexico. BP's final bill for the spill and
its economic and environmental damages remains in the hands of U.S.
federal courts.
But the deals effectively end a five-year legal entanglement for
Halliburton and Transocean. Both companies said in news releases
that they settled all remaining claims with BP and were fully
indemnified by BP against future court findings.
London-based BP was the owner of the Macondo well and its
employees directed the drilling of the well. Halliburton cemented
the well and performed other critical services. Transocean owned
and operated the Deepwater Horizon drilling rig.
Under the terms of the deal between BP and Swiss-based
Transocean, the offshore rig operator will pay $212 million to
businesses and local governments that brought claims, plus an
undetermined amount of attorney's fees. The deal is subject to
approval from the U.S. District Court. BP has agreed to pay
Transocean $125 million to reimburse it for legal fees and has
dropped all further claims.
"These settlements provide substantial closure to five years of
litigation and we are confident that this agreement can be a
significant step forward in our efforts to renew our partnership
with BP," Jeremy Thigpen, Transocean's president and chief
executive officer, said in a prepared statement.
Separately, Halliburton said it had reached a deal with BP to
settle all remaining claims and counterclaims between the
companies. The Houston-based oil-field service provider didn't
disclose the terms of the deal.
In a statement, BP said it was "pleased to have resolved with
Halliburton and Transocean the final remaining disputes stemming
from the Deepwater Horizon accident. We have now settled all
matters relating to the accident with both our partners in the well
and our contractors."
While BP has settled with its contractors, the company still
faces court cases related to the economic damages owed local
business and governments, as well as a giant pollution fine under
the federal Clean Water Act.
Last year, a federal judge presiding over the pollution case
said that BP acted recklessly to cut costs and failed to perform
critical safety tests. These tests may have let workers know the
Macondo well wasn't properly sealed and that BP was at risk of
losing control of the well. Then earlier this year, the judge ruled
that BP was liable for 3.19 million barrels that leaked into the
Gulf. The judge hasn't yet ruled how much BP owes per barrel
spilled.
Write to Russell Gold at russell.gold@wsj.com
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