Monday, September 27, 2010

Halliburton (NYSE:HAL) Says BP (NYSE:BP) Wrong on Cement Work

With billions at stake, determining the fault of companies like BP (NYSE:BP) and Halliburton (NYSE:HAL) will have a dramatic effect on the health of the companies.

BP has blamed Halliburton concerning its cement work, saying the correct amount of hydrogen wasn't included in the cement mix. Halliburton responded by saying it was the design of the oil well itself that caused the problem.

Halliburton's vice president of cementing, Thomas Roth, said BP didn't test the actual cement used in the well, but rather a cement recipe the cement job used as a guide was was what was tested. He added they also used a different manufacturing technique than Halliburton uses when they tested the mix.

Roth also countered at a National Academies hearing in Washington that it was “BP’s well design and operational decisions compromised well integrity,” not the cement mix.

The question arose as to why Roth and Halliburton didn't stop the process if they knew the well design was faulty.

Roth responded by saying they “didn’t see it to be an unsafe operation as it was being executed.”

In an internal investigation, BP has mostly placed the blame of the failed oil well on other companies, including Halliburton and rig owner Transocean (NYSE:RIG).

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