Halliburton Reaches Settlement on Claims Related to Macondo
September 02 2014 - 9:00AM
Business Wire
Halliburton (NYSE: HAL) today announced that it has reached an
agreement to settle a substantial majority of the plaintiffs’ class
claims asserted against the company as a result of the April 20,
2010 Macondo well incident in the Gulf of Mexico. The approximately
$1.1 billion settlement, which includes legal fees, is subject to
approval by the United States District Court for the Eastern
District of Louisiana, and will be paid into a trust until all
appeals have been resolved in three installments over the next two
years. The company’s previously accrued loss contingency provision
relating to the multi-district litigation proceedings is currently
$1.3 billion.
The agreement includes the following:
- Claims against Halliburton that BP
assigned to the settlement class in BP’s April 2012
settlement,
- Punitive damages claims against
Halliburton by a class of plaintiffs who allege damages to property
or associated with the commercial fishing industry arising from the
Deepwater Horizon Incident, and
- Affirmation that Halliburton has no
liability for compensatory damages to the members of the settlement
class in the BP April 2012 settlement.
Payments will be held in the trust, pending the finalization of
this settlement which is contingent on final Court approval,
including any appeals of:
- The BP 2012 settlement with the
settlement class,
- The District Court’s earlier
determination that the contractual indemnity provided by BP to
Halliburton is valid and enforceable, and
- The District Court’s earlier dismissal
of economic damage claims against Halliburton.
Additionally, the settlement is subject to an agreed-upon level
of participation by the current claimants which, if not achieved,
allows Halliburton to terminate the agreement.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest
providers of products and services to the energy industry. With
more than 80,000 employees, representing 140 nationalities in
approximately 80 countries, the company serves the upstream oil and
gas industry throughout the lifecycle of the reservoir - from
locating hydrocarbons and managing geological data, to drilling and
formation evaluation, well construction and completion, and
optimizing production through the life of the field. Visit the
company’s website at www.halliburton.com. Connect with Halliburton
on Facebook, Twitter, LinkedIn, Oilpro
and YouTube.
Note: The statements in this press release that are not
historical statements are forward-looking statements within the
meaning of the federal securities laws. These statements are
subject to numerous risks and uncertainties, many of which are
beyond the company's control, which could cause actual results to
differ materially from the results expressed or implied by the
statements. These risks and uncertainties include, but are not
limited to: final court approval of Halliburton’s settlement, BP’s
April 2012 settlement, the multi-district litigation (MDL) District
Court’s determination regarding the enforceability of BP’s
contractual indemnity to Halliburton and the MDL District Court’s
dismissal of economic-only claims against Halliburton; results of
litigation, settlements, and investigations not covered by the
settlement; actions by third parties, including governmental
agencies relating to the Macondo well incident; an agreed-upon
level of participation by claimants in the settlement;
indemnification and insurance matters; Halliburton's Form 10-K for
the year ended December 31, 2013, Form 10-Q for the quarter ended
June 30, 2014, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission filings discuss some of the
important risk factors identified that may affect Halliburton's
business, results of operations, and financial condition.
Halliburton undertakes no obligation to revise or update publicly
any forward-looking statements for any reason.
HalliburtonFor Investors:Kelly Youngblood,
281-871-2688Investor RelationsInvestors@Halliburton.comFor
Media:Emily Mir, 281-871-2601Public
RelationsPR@Halliburton.com
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