Tag: BP

The legal tussle between Transocean and BP stemming from the 2010 spill Transocean Ltd. filed a motion in federal court Tuesday to forceBP PLC to indemnify it against damages related to the Deepwater Horizon oil spill.The legal salvo is the latest in an increasingly bitter contractual dispute between the companies over whether the Switzerland-based Transocean should help pay billions of dollars in costs and government penalties. Federal investigations into the incident have put blame on both BP and Transocean in the 2010 spill, which occurred after a drilling crew lost control of an oil well in deep water off the coast of Louisiana.BP has agreed to pay costs related to cleaning up the spill. But the London-based oil giant is seeking to have Transocean help cover the oil-spill cleanup costs, arguing that Transocean and its employees bear partial responsibility for the accident.Transocean, owner of the world's largest fleet of offshore deepwater drilling rigs, says that BP agreed in its contract to "defend, indemnify and hold harmless" the driller.Transocean, in its legal motion, argues that BP is trying to nullify its contract for use of the Deepwater Horizon drilling rig. "Why have you signed so many contracts, reviewed by an army ...

Seeking to recover oil spill-related costs and re-invest in high-growth activities BP surged back into profit in the first nine months of the year, it said on Tuesday, declaring that it has now reached a "clear turning point" after the devastating Gulf of Mexico oil disaster in April 2010.The energy major added it will sell another $15 billion of non-core assets by 2013, expanding its divestment programme to $45 billion, as it seeks to recover oil spill-related costs and re-invest in high-growth activities.And the London-listed company, whose reputation was ravaged by the fatal Gulf of Mexico catastrophe, predicted that that BP's cashflow would grow by around 50 percent by 2014 -- which would mean greater returns for shareholders.Net profits struck $17.7 billion in the nine months to September, helped by high oil prices, BP said in a results statement. That compared with a loss of $9.3 billion in the same part of 2010 when it was hit by huge oil spill costs.And BP's replacement cost profit, a keenly-watched measure that strips out gains or losses from inventories and other non-operating items, hit $15.9 billion in the nine-month period.That also contrasted sharply with a loss of $9.5 billion last time around ...

BOEM confirmed BP's compliance with the bureau's standards establish after the oil tragedy The Bureau of Ocean Energy Management (BOEM) has approved a supplemental Exploration Plan (EP) submitted by BP for deepwater oil and gas activities. BOEM conducted a site-specific Environmental Assessment (EA) of the activities described in the plan. This is the 44th plan that has been approved following the completion of a site-specific EA since stronger regulations were implemented in June 2010.Prior to any drilling under the plan, BP must obtain drilling permits from the Bureau of Safety and Environmental Enforcement (BSEE), which will continue to assess the information that is necessary to allow specific activities.This is the first EP that BP has had approved since the 2010 Deepwater Horizon explosion and subsequent oil spill. Before approving this EP, BOEM confirmed BP's compliance with the bureau's rigorous, heightened standards established following the Deepwater Horizon tragedy. In July 2011, BP announced additional safety enhancements and performance standards they would voluntarily implement in connection with its deepwater drilling operations in the Gulf of Mexico. BOEM has verified that BP has met the relevant voluntary performance standards."BOEM is dedicated to ensuring that the development of the nation's energy resources is conducted ...

43 oil drilling plans in the Gulf have already been approved The Obama administration is set to allow BP to resume exploratory drilling in the Gulf of Mexico roughly a year-and-a-half after the company oversaw the largest offshore spill in history -- but without any changes to the laws that hold companies responsible for the economic damages that such spills cause.Friday's announcement from the Bureau of Ocean Energy Management that BP could proceed with plans to drill four exploratory wells roughly 200 miles from the Louisiana coast was a coda to a summer-long saga that forced the government to confront uncomfortable questions about offshore drilling and its economic and environmental impacts.Government officials said Friday that BP had proved its "compliance with the heightened standards that all deepwater activities must meet." An Obama administration official noted that 43 oil drilling plans in the Gulf had already been approved and that this was the first approval specifically for BP. In each case, the official noted, the company had to pass environmental and safety tests including "the ability to demonstrate containment" of a spill.In other words: BP had to show that there wouldn't be a repeat of the spill that lasted for three ...

Adarko agreed to pay $4 billion to BPas part of a settlement Anadarko Petroleum Co. has agreed to pay $4 billion to BP PLC as part of a settlement related to last year's Gulf of Mexico oil spill, adding weight to BP's contention that it was not solely responsible for the disaster.BP said Monday that Anadarko's payment will form part of the British company's $20 billion trust fund, which has paid out $7 billion so far to settle claims from individuals and businesses. Eleven workers were killed when the Deepwater Horizon rig at the Macondo well exploded off Louisiana on April 20, 2010, causing the largest oil spill in U.S. history.BP has now reached settlements with both of its partners in the Macondo well.However, it is still embroiled in lawsuits and countersuits with Transocean Ltd., operator of the Deepwater Horizon drilling rig, and Halliburton Co., which was responsible for cementing the well. The suits are scheduled to go to trial in New Orleans in February.BP also faces the prospect of fines in the tens of billions of dollars.The market cheered the Anadarko agreements, pushing BP shares 4 percent higher at 433 pence in early afternoon trading on the London Stock ...

The most BP could be fined is $21 millionfor the Gulf oil spill The head of the offshore drilling safety agency is telling Congress current fines for offshore violations need to be much stiffer.Michael Bromwich, head of the Bureau of Safety and Environmental Enforcement, says the maximum civil penalty for a violation offshore should be "well into the six figures" per day, per incident. The maximum fine was $35,000 per day at the time of the Gulf blowout. Bromwich called that amount "trivial" for profitable companies spending up to $1 million a day leasing an offshore rig.Bromwich's statement comes a day after BP was cited for seven violations, and its contractors Transocean and Halliburton, four apiece, stemming from the Gulf spill.Massachusetts Democratic Rep. Edward Markey says based on his calculations, the most BP could be fined is $21 million.Source: Huffington Post

The violations were issued as Incidents of Non-Compliance The Bureau of Safety and Environmental Enforcement issued the initial group of violations resulting from the findings of the Joint Investigation on the Deepwater Horizon explosion and oil spill. The violations were issued as Incidents of Non-Compliance (INC); a total of 15 INCs were issued by faxed letters to BP, Transocean and Halliburton."The issuance of INCs to BP, Transocean and Haliburton is an important step in addressing the regulatory violations found during the joint investigation. To ensure the safe and environmentally responsible conduct of offshore operations, companies that violate federal regulations must be held accountable," said BSEE Director Michael R. Bromwich. "The joint investigation clearly revealed the violation of numerous federal regulations designed to protect the integrity of offshore operations; these INCs are the next step in vindicating the regulatory program designed to protect the interests of the public."The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE)/U.S. Coast Guard Joint Investigation Team released its final investigative report on the April 20, 2010, Deepwater Horizon explosion, loss of life, and resulting oil spill on September 14, 2011. Volume II, covering the areas of the investigation under BOEMRE jurisdiction, includes findings on the ...

100,000 individual claims against BP and Transocean Ltd The legal impacts of the Deepwater Horizon disaster continue to reverberate throughout the maritime community, most recently in the form of a lengthy court order issued in the multi-district litigation involving persons affected by the explosion, fire, and sinking of the rig in the Gulf of Mexico off the Louisiana coast in April 2010.The order resolved a variety of preliminary and procedural issues raised in the over 100,000 individual claims. The claims are against BP, as well as Transocean Ltd., the Switzerland-based owner and operator of the Deepwater Horizon drilling rig, the Houston-based Halliburton Co., which was responsible for cementing services, and Cameron International Corp, which provided blowout prevention equipment. These companies sought to dismiss all claims brought pursuant to either general maritime law or state law and leave only claims arising under the U.S. Oil Pollution Act of 1990 ("OPA") in the litigation.First, the court ruled that admiralty jurisdiction is present because the alleged tortious conduct of the defendants occurred upon navigable waters of the Gulf of Mexico, disrupted maritime commerce, and the operations of the vessel bore a substantial relationship to traditional maritime activity. The term "vessel" is broadly construed ...

Concerning the DeepWater Horizon tragedy

Stemming from last year's rig explosion and massive Gulf oil spill Federal regulators on Wednesday cited oil company BP PLC and two other companies - Transocean Ltd. and Halliburton - for alleged safety and environmental violations stemming from last year's rig explosion and massive Gulf oil spill.The companies have 60 days to appeal the citations issued by the Interior Department's Bureau of Safety and Environmental Enforcement.The bureau says the alleged regulatory violations could result in civil penalties once the appeal period has ended.These initial citations are the product of a federal government probe of the Deepwater Horizon blast, which killed 11 workers and hastened the nation's worst offshore oil spill."To ensure the safe and environmentally responsible conduct of offshore operations, companies that violate federal regulations must be held accountable," BSEE Director Michael R. Bromwich said in a statement. "The joint investigation clearly revealed the violation of numerous federal regulations designed to protect the integrity of offshore operations."One of the citations accuses well owner BP, rig owner Transocean and cement contractor Halliburton of failing to operate in a "safe and workmanlike manner." Another says the companies "failed to take necessary precautions to keep the well under control at all times."A report ...