Deepwater Dispute- BP, Halliburton and Transocean Settle

Published at 09:03AM - 23/05/15

BP and the oil services firms Halliburton and Transocean have settled all claims against each other over the 2010 Deepwater Horizon accident. The oil and gas giant has agreed to end its legal actions against the two firms, and they have both reciprocated, resolving their claims against BP.

Transocean owned and operated the Deepwater Horizon, while BP owned the Macondo well, from which vast quantities of oil spilled. Under the agreement between the two companies BP will pay any damages Transocean incurs for harm the accident caused to natural resources. Court rulings have already suggested that the terms of the rig contract signed by the two firms cover this compensation. BP will also contribute $125m to Transocean’s legal bills.

On the Transocean side, the company will pay any personal injury claims connected with the accident made by its employees. It will also cover the cost of cleaning up diesel or other pollutants that leaked from the Deepwater Horizon itself. The two companies will also end all other claims they have against each other.

According to reports, the agreement between BP and Halliburton, which cemented the well and provided other critical services, will not involve payments from either side. Details of the deal have not been disclosed, but Halliburton issued a statement in which it described the settlement of ‘indemnities between the parties and dismissal of all claims’.

Both Transocean and Halliburton expressed a desire to renew their relationship with the oil giant. Last month, BP raised its estimate of how much the accident would cost the company to $10.3bn.