After a somewhat disappointing performance in the last quarter, Transocean (NYSE:RIG) decided it was time to point to their contract with BP (NYSE:BP) and how it protects them from the majority of claims and lawsuits which are being leveled against BP.
In a required regulatory filing with the U.S. Securities and Exchange Commission, Transocean cited their contract, which evidently entails about 400 pages, saying it protects the company the majority of damages resulting from the Deepwater Horizon explosion that led to the oil leaking into the ocean, and loss of 11 workers.
One are it doesn't protect them in is with nine of the workers, who had worked for Transocean. The remaining two that perished in the accident worked for BP.
This is important for Transocean, and the reason they bring it up at this time is a form of guidance for their shareholders and potential investors.
If it isn't clear as to the level of liability faced by Transocean in the Macondo oil well disaster, most will sit on the sidelines until that becomes clearer.
Transocean is attempting to eliminate that potential scenario by pointing to the terms of the contract, which others feel that have a solid case for.
Others like Anadarko Petroleum (NYSE:APA) and Mitsui (Nasdaq:MITSY), while under different contracts, are also waiting things out before committing to paying any funds. They'll probably wait for the final determination as to whether or not BP is identified as reckless in the matter, which could be a strong impetus for them to continue to resist paying the bills BP is sending them, and fight it out in arbitration, which the contracts call for, or possibly in court if they have to.
No comments:
Post a Comment