The battle between Anadarko Petroleum Corp. (NYSE:APC) and BP (NYSE:BP) (LON:BP) over whether or not Anadarko should pay a portion of the costs related to the explosion of the Deepwater Horizon which caused the enormous oil spill in the region, has brought attention to Anadarko concerning the cost of protecting their debt.
Concerns over their debt has increased the upfront costs of Anadarko by $100,000 since Friday, increasing to $400,000 overall for credit default swaps. That's in addition to the $500,000 it cost to ensure $10 million annually.
BP has been pushing their partners, Anadarko and Mitsui over sharing the financial burden, especially Anadarko, who is a 25 percent partner in the venture.
Anadarko claims they're relieved of responsibility because their agreement to share costs was broken because of the "gross negligence" of BP.
BP has sent a bill to Anadarko, which will probably take litigation to collect, assuming BP would win the case.
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