HOUSTON, Dec. 16, 2011 /PRNewswire/ -- Cameron (NYSE:
CAM) today announced an agreement with BP whereby BP will indemnify
Cameron for current and future
compensatory claims against Cameron associated with the Deepwater Horizon
incident.
Under the terms of agreement, Cameron agrees to pay $250 million to BP, and both parties have agreed
to mutually release claims against each other. In addition,
BP will fully indemnify Cameron
for damage claims arising under the Oil Pollution Act, claims for
natural resource damages and associated damage-assessment costs,
and other claims arising from third parties.
"This agreement with BP is the right action, as it removes
uncertainty facing Cameron in the
litigation associated with the Deepwater Horizon event," Cameron
Chairman and CEO Jack Moore
said. "This eliminates all significant exposure to historical
and future claims related to this incident. Though this
agreement does not provide indemnification against fines and
penalties, punitive damages or certain other potential
non-compensatory claims, we do not consider these items to
represent a significant risk to Cameron."
The Company's insurers are expected to fund not less than
$170 million of this agreement.
The Company expects to take a charge in the fourth quarter
for any amounts not covered by insurance.
Cameron is a leading provider
of flow equipment products, systems and services to worldwide oil,
gas and process industries.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Terms such as "will," "will be," and "are scheduled" and the
like are intended to identify forward-looking statements. The
forward-looking statements in this press release are based on our
current expectations and are made only as of the date of this press
release. We undertake no obligation to update forward-looking
statements to reflect new information. We cannot assure you the
projected outcomes will be achieved. Because forward-looking
statements involve risks and uncertainties, they are subject to
change at any time. Such risks and uncertainties, many of which are
beyond our control, include, but are not limited to the amount of
the agreement the Company's insurers are expected to fund, the
performance of contractual obligations by our counterparty and the
outcome of the litigation associated with the Deepwater Horizon
incident and, in particular, the likelihood of fines, penalties,
punitive damages or certain other potential non-compensatory claims
being asserted against Cameron,
for which indemnification is not being provided.
Because the information herein is based solely on data currently
available, it is subject to change as a result of changes in
conditions over which the Company has no control or influence, and
should not therefore be viewed as assurance regarding the Company's
future performance. Additionally, the Company is not
obligated to make public indication of such changes unless required
under applicable disclosure rules and regulations.
Website: www.c-a-m.com
SOURCE Cameron