The Deepwater Horizon aflame after explosion
BP began litigation against the owner of the rig that exploded last year and the maker of the device which failed to prevent the explosion. The result was the worst offshore oil spill ever seen in the United States. BP alleges negligence on the part of the plaintiffs.
The company stated in papers submitted to a federal court in New Orleans that it is seeking a minimum of $40bn in damages from Transocean, owner of the ill-fated Deepwater Horizon rig. BP alleges that every one of the rig’s safety systems failed. BP is also suing Cameron International, the design of whose blowout preventer was faulty. Both companies lodged counter-claims. More legal action is being taken by BP against the cement contractor Halliburton for fraud, negligence and concealment of information connected with its work on the rig. A federal trial is set to take place next year.
BP has estimated its liabilities from the accident as $40.9bn, but there could be tens of billions of dollars more in penalties from the U.S. government. 11 people died when the Deepwater Horizon exploded on April 20, 2010, and over 200 million gallons of oil were released into the ocean. An independent firm hired by the government found last month that the design of the blowout preventer was wrong, but also that the actions of the rig crew were at fault.
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Veronica worked on Wall Street before becoming a business and financial writer. We are fortunate to have such a talented and knowledgeable journalist heading up our business news desk.
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