BP says Transocean still liable for punitive damages on Gulf oil spill

27 January 2012 06:00  [Source: ICIS news]

SINGAPORE (ICIS)--UK energy major BP said late on Thursday that Transocean - its contractor for the ill-fated Deepwater Horizon rig - remains liable to punitive damages and civil penalties for massive oil spill at the Gulf of Mexico in 2010.

The company issued the statement following a US court ruling that favoured rig-owner Transocean, in terms of not having to pay all claims raised by third parties on pollution caused by the oil spill.

An explosion at the Deepwater Horizon rig on 20 April 2010 killed 11 and caused the largest offshore spill ever recorded in US history.

US District Judge Carl Barbier ruled that Transocean’s contract with BP shielded the Deepwater Horizon rig operator from the full responsibility of paying the claims, according to media reports.

This meant that BP will have to pay for some of Transocean’s liabilities on the oil spill accident.

Nonetheless, Transocean is not fully indemnified in its contract with BP.

“Under the decision Transocean is, at a minimum, financially responsible for any punitive damages, fines and penalties flowing from its own conduct,” BP said.

“As we have said from the beginning, Transocean cannot avoid its responsibility for this accident," the company added.

BP said it has paid more than $7.8bn (€5.93bn) in claims, advances and other payments to individuals, businesses and governments in the aftermath of the Deepwater Horizon incident.

($1 = €0.76)

By: Nurluqman Suratman

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly