Halliburton: Expects To Be Fully Indemnified By Contracts
June 02 2010 - 1:25PM
Dow Jones News
Halliburton Co. (HAL) said Wednesday that it expects to be fully
indemnified from all claims and expenses resulting from the oil
spill moving through the U.S. Gulf of Mexico.
Halliburton performed the cementing job and other services
related to the development of the blown-out deepwater well has
produced the biggest oil spill in U.S. history. The
oilfield-services provider is working with BP PLC (BP,BP.LN)), the
company responsible for the spill and the cleanup effort, to stanch
the flow of oil by assisting with the drilling of relief wells that
are intended to stem the flow of oil.
"Halliburton is continuing to devote significant resources to
assisting in well control and relief-well efforts," Tim Probert,
Halliburton's president of global business lines, said during a
conference call with investors.
Executives said the company is confident that it will be
protected from any claims resulting from the spill. The company
also maintains about $600 million in general liability
insurance.
The Houston-based company has been in the spotlight since the
late April explosion and sinking of the Transocean Ltd. (RIG) rig
Deepwater Horizon that killed 11 workers. Oil has continued to flow
from that well unabated as BP Wednesday worked to shear off a piece
of leaking pipe and lower a containment unit in an effort to
capture the oil.
Halliburton executives said the company's customers are working
toward temporarily abandoning wells in the U.S. Gulf, where the
federal government has issued a moratorium on new deepwater well
construction permits and drilling activity.
U.S. President Barack Obama, facing a political uproar over the
spill, Thursday halted much of the planned or current exploratory
drilling off U.S. coasts, including all 33 rigs developing
exploratory wells in the deep waters of the Gulf.
Probert said some operators are considering shifting drilling
activity overseas or drilling wells in less than 500 feet of water.
Its customers are also looking at well maintenance activities.
"The goal of many operators is really to keep all of their rigs
working on value-added activities," Probert said.
Halliburton is working to place its workers in the Gulf in other
areas of the company while activity is stalled in the Gulf. The
company's revenue from the U.S. Gulf of Mexico represents about 16%
of its North American revenue in 2009.
-By Jason Womack, Dow Jones Newswires; 713-547-9201;
jason.womack@dowjones.com
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