CORRECT: Cameron To Pay BP $250 Million To Settle Oil-Spill Claims
December 16 2011 - 2:14PM
Dow Jones News
Cameron International Corp. (CAM) agreed to pay BP PLC (BP,
BP.LN) $250 million to settle all claims between the two companies
relating to the giant 2010 Deepwater Horizon accident in the Gulf
of Mexico, a development that may diffuse BP's responsibility for
the oil spill.
The settlement by Cameron, the fourth company to pay concessions
to BP, is the latest settlement in BP's quest to win back money
from partners and contractors in the Macondo well.
In exchange, BP has agreed to indemnify Cameron from
compensatory claims related to the accident, including
environmental claims, the companies said Friday. Cameron
manufactured a critical safety device intended to shut down the
Macondo well that the Deepwater Horizon rig was drilling.
Christine Tiscareno, an analyst at S&P Equity Research, said
the settlement with Cameron was likely to lessen the severity of
future civil charges against BP. "It's less likely you can take BP
and charge them with unlawful negligence if they can prove there
are also parties that have agreed it's not the case," she said.
BP is still embroiled in several cases related to the Deepwater
Horizon accident, which killed 11 workers and caused the worst U.S.
offshore oil spill in history.
A series of reports, including two major federal investigations,
published earlier this year found that BP's contractors were also
at fault for the well blowout and spill.
In one case, BP said Halliburton Co. (HAL), which was in charge
of cementing the drilling rig, destroyed evidence in the weeks
leading up to the explosion that showed the formula used on the
drilling operation was flawed. Halliburton said BP had
mischaracterized the testing.
BP also continues to spar with drilling contractor Transocean
Ltd. (RIG, RIGN.VX).
BP's partners in the well, Anadarko Petroleum Corp. (APC) and
Mitsui & Co. (MITSY, 8031.TO), and oil-services company
Weatherford International Ltd. (WFT) also reached agreements with
BP that protect them against future claims. BP faces a key trial in
February 2012 related to the case.
BP shares closed Thursday at 447.85 pence valuing the company at
GBP84.93 million.
-By Jenny Gross, Dow Jones Newswires; 4420-7842-9239;
jenny.gross@dowjones.com
Cooper Cameron (NYSE:CAM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cooper Cameron (NYSE:CAM)
Historical Stock Chart
From Jul 2023 to Jul 2024