BP Not Covered By Transocean s Deepwater Horizon Insurance
The court found that BP assumed full responsibility for oil released from the well A U.S. judge said Tuesday that BP PLC (BP) isn't entitled to receive money from Transocean Ltd.'s (RIG) insurers for costs related to the Deepwater Horizon oil spill.The U.K. oil giant had sought U.S. courts to rule that it was covered under Transocean's insurance for the doomed Deepwater Horizon rig, even though its contract with the drilling company stated that BP would assume responsibility for spill costs.U.S. District Judge Carl Barbier, of Louisiana's Eastern District, said "BP is not entitled to the declarations of coverage it seeks," because in the drilling contract it signed both BP and Transocean split responsibilities. The court found that Transocean agreed to bear the cost of any accidents occurring above the surface of the water from spills, leaks or fuel discharges, while BP assumed full responsibility for oil released from the well."BP is not entitled to the declarations of coverage it seeks," the judge ruled. The policies included about $750 million of coverage, the court filing said.Under federal laws, the oil company in charge of a lease--in this case, BP--assumes the cost of stopping a spill and cleaning it up, to ...
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