Tuesday, May 25, 2010

BP (NYSE:BP) Suing Transocean (NYSE:RIG)

BP (NYSE:BP) has filed a claim with a U.S. Court trying to get damages against Transocean, (NYSE:RIG) the company in charge of drilling the oil well.

Court documents say Transocean is arguing that the contract they had with BP makes it only liable for environmental damage caused by any spill from its rig. The insurer, Lloyd's of London is asking the Court to block the claim. Even though it was Transocean's oil rig that exploded, sank, thus causing the pipe to break and has been spewing crude oil for coming to the close of five weeks now.

BP said it has filed a claim against the insurers but declined further comment.

Even if BP gets the full $700 million in insurance, it is a minute amount considering the compensation that will have to be paid out to people who have experienced losses during the oil spill catastrophe. Not to mention what the total bill will be for the cleanup efforts and environmental damages. USB analysts put the amount at around $12 billion.

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