In somewhat of a turnaround, Transocean (NYSE:RIG) chief executive officer Steven Newman said today that he agreed with the "general conclusion" of the recently released BP (NYSE:BP) report on the series of events which ultimately led to the Deepwater Horizon oil rig explosion.
At a conference held by Barclays Capital (NYSE:BCS) in New York, Newman said, "I agree with the general conclusion of BP's report that this was a combination of events."
After the report was released, Newman said it was "self-serving" to BP, and that "BP made a series of cost-saving decisions that increased risk - in some cases, severely."
Halliburton (NYSE:HAL), which have particularly and strongly pointed out for the alleged failure of their cement work in the incident, also blasted the BP report.
BP said there were a series of eight failures which resulted in the explosion on the oil rig owned by Transocean but operated by BP.
Showing posts with label BP Report. Show all posts
Showing posts with label BP Report. Show all posts
Wednesday, September 15, 2010
Monday, September 13, 2010
BP (NYSE:BP), Halliburton Battle Heating Up Over Cement
The battle between Halliburton (NYSE:HAL) and BP (NYSE:BP) is heating up as the Justice Department is entering the fray with its plans to test the cement used by Halliburton on the failed oil well.
In BP's report last week the company said the cement used by Halliburton was "likely unstable." That's important because it would result in the shrinking of the cement which would have left gaps which would have allowed the entry of hydrocarbons.
A government commission said, "The Department of Justice is presently working with Halliburton to secure cement evidence from the well and, when that process is complete, the Commission and other investigators will work with them to obtain desired test protocols."
Halliburton claims the BP report has left a lot out of it and was inaccurate, but they haven't offered up what those inaccuracies or omissions were.
In BP's report last week the company said the cement used by Halliburton was "likely unstable." That's important because it would result in the shrinking of the cement which would have left gaps which would have allowed the entry of hydrocarbons.
A government commission said, "The Department of Justice is presently working with Halliburton to secure cement evidence from the well and, when that process is complete, the Commission and other investigators will work with them to obtain desired test protocols."
Halliburton claims the BP report has left a lot out of it and was inaccurate, but they haven't offered up what those inaccuracies or omissions were.
Friday, September 10, 2010
Investors Shrug Off BP (NYSE:BP) Report with Transocean (NYSE:RIG)
Transocean (NYSE:RIG) investors are largely ignoring the report by BP (NYSE:BP) which pointed to them as being responsible for some of the failure which led to the explosion on the Deepwater Horizon oil rig.
Shares are at their highest level in over a month, reaching $59.70, a gain of $4.40, or 7.96 percent, at 12:07 PM EDT.
A report from FBR Capital Markets is probably one of the reasons for the surge in share price of Transocean, as they said in the report they believe Transocean will settle with BP from $1 billion to $2 billion.
FBR added that's significantly below the $6 billion to $7 billion they think shares of Transocean have been discounted at because of their potential liability in the oil spill.
There are still some questions as to whether or not Transocean will be liable for anything because of the contract they had with BP which provides them with total indemnification.
Much still rides on whether or not BP is designated as having been grossly negligent in the incident.
Shares are at their highest level in over a month, reaching $59.70, a gain of $4.40, or 7.96 percent, at 12:07 PM EDT.
A report from FBR Capital Markets is probably one of the reasons for the surge in share price of Transocean, as they said in the report they believe Transocean will settle with BP from $1 billion to $2 billion.
FBR added that's significantly below the $6 billion to $7 billion they think shares of Transocean have been discounted at because of their potential liability in the oil spill.
There are still some questions as to whether or not Transocean will be liable for anything because of the contract they had with BP which provides them with total indemnification.
Much still rides on whether or not BP is designated as having been grossly negligent in the incident.
Thursday, September 9, 2010
BP (NYSE:BP) Report Puts Pressure on Halliburton (NYSE:HAL), Transocean (NYSE:RIG)
While there are other players in the game, including Cameron International (NYSE:CAM), who provided the blowout preventer which failed to function properly, the report released by BP (NYSE:BP) mostly targeted Halliburton (NYSE:HAL) and Transocean (NYSE:RIG) as being significant parts in the series of failures leading to the explosion on the Deepwater Horizon.
Cameron International isn't a real focus because the evidence there should be easy to determine and conclude as to what went wrong, making it a waste of time to pursue on the part of BP. Whatever happened, Cameron should be held mostly responsible and liable for it.
The major failures according to the BP report were the cement job by Halliburton, and the failure of Transocean to implement safety measures in response to the pressure buildup from the failed cement barrier.
Once the cement barrier failed, gases went up inside the well which ultimately led to the explosion on the oil rig.
Incoming BP CEO Bob Dudley said, "We have said from the beginning that the explosion on the Deepwater Horizon was a shared responsibility among many entities."
Other investigations will be performed to substantiate or refute the findings of the BP report.
Cameron International isn't a real focus because the evidence there should be easy to determine and conclude as to what went wrong, making it a waste of time to pursue on the part of BP. Whatever happened, Cameron should be held mostly responsible and liable for it.
The major failures according to the BP report were the cement job by Halliburton, and the failure of Transocean to implement safety measures in response to the pressure buildup from the failed cement barrier.
Once the cement barrier failed, gases went up inside the well which ultimately led to the explosion on the oil rig.
Incoming BP CEO Bob Dudley said, "We have said from the beginning that the explosion on the Deepwater Horizon was a shared responsibility among many entities."
Other investigations will be performed to substantiate or refute the findings of the BP report.
Citigroup (NYSE:C) Responds to BP (NYSE:BP) Report
A flurry of responses, negative and positive, emerged in the aftermath of the release by BP (NYSE:BP) of their report stating the causes which led to the destruction of the Deepwater Horizon oil rig, and resultant release of oil and gas into the Gulf of Mexico.
Citigroup (NYSE:C) liked what BP had to say: “The report is not enough to give visibility on the eventual cost of this episode to BP but it demonstrates that BP is vigorously contesting that they were guilty of gross negligence, which would lower the range of cost outcomes.”
It seemed the market in general liked the report, and BP and other major oil companies rose after the contents of the report were released.
The report basically said a series of failures led to the accident, including systemic, mechanical and human failure.
Citigroup (NYSE:C) liked what BP had to say: “The report is not enough to give visibility on the eventual cost of this episode to BP but it demonstrates that BP is vigorously contesting that they were guilty of gross negligence, which would lower the range of cost outcomes.”
It seemed the market in general liked the report, and BP and other major oil companies rose after the contents of the report were released.
The report basically said a series of failures led to the accident, including systemic, mechanical and human failure.
BP (NYSE:BP), Halliburton (NYSE:HAL), Transocean (NYSE:RIG) Strong After BP Report
The combat continues between major Gulf oil spill companies BP (NYSE:BP), Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), especially after sniping for months, and then the release of the BP report which included their two major competitors in an unflattering light in connection to the accident on the Deepwater Horizon.
Other companies like Weatherford International (NYSE:WFT) also took some heat in the report, getting sold off during the date, with their share trading volume at levels almost three times the daily norm.
It won't be known what Cameron International's (NYSE:CAM) will be liable for until the failed blowout preventer is examined to see what caused it to not perform as it should.
As far as BP, Halliburton and Transocean, they enjoyed a good day, all of them closing up.
BP closed Wednesday at $38.37, gaining $1.18, or 3.17 percent. Halliburton closed at $30.21, an increase of $0.37, or 1.24 percent. Transocean was up to $53.74, rising $0.69, or 1.30 percent.
While the BP report did spread the blame around to other companies, it really didn't produce any smoking gun, and that seemed to placate the market, which rewarded the broader oil sector.
Other companies like Weatherford International (NYSE:WFT) also took some heat in the report, getting sold off during the date, with their share trading volume at levels almost three times the daily norm.
It won't be known what Cameron International's (NYSE:CAM) will be liable for until the failed blowout preventer is examined to see what caused it to not perform as it should.
As far as BP, Halliburton and Transocean, they enjoyed a good day, all of them closing up.
BP closed Wednesday at $38.37, gaining $1.18, or 3.17 percent. Halliburton closed at $30.21, an increase of $0.37, or 1.24 percent. Transocean was up to $53.74, rising $0.69, or 1.30 percent.
While the BP report did spread the blame around to other companies, it really didn't produce any smoking gun, and that seemed to placate the market, which rewarded the broader oil sector.
Wednesday, September 8, 2010
Halliburton (NYSE:HAL), Transocean (NYSE:RIG) Blast BP (NYSE:BP) Report
Not long after the contents of the BP (NYSE:BP) report on the causes which led to the explosion on the Deepwater Horizon oil rig, Halliburton (NYSE:HAL) and Transocean (NYSE:RIG) blasted the report.
The general conclusion of BP was the blame for the failure was spread across 8 different situations, all of which led to the accident. Both Transocean and Halliburton were cited as part of that failure.
Transocean who has continually said BP was "irresponsible" in the situation, said the BP report was "self-serving." Halliburton said the report was far from completed, and had "substantial omissions and inaccuracies."
What this is all about of course is liability, and since BP has been held almost totally responsible, if others are identified as having failed in their part in any way, BP will probably be collecting money from them to help pay for the liability costs.
The companies would also probably have an increased series of lawsuits instigated against them.
This is only the first word concerning the causes of the event, and it'll take some time to sort out and see how accurate the BP report is considered, and if others will share more in paying for it.
The general conclusion of BP was the blame for the failure was spread across 8 different situations, all of which led to the accident. Both Transocean and Halliburton were cited as part of that failure.
Transocean who has continually said BP was "irresponsible" in the situation, said the BP report was "self-serving." Halliburton said the report was far from completed, and had "substantial omissions and inaccuracies."
What this is all about of course is liability, and since BP has been held almost totally responsible, if others are identified as having failed in their part in any way, BP will probably be collecting money from them to help pay for the liability costs.
The companies would also probably have an increased series of lawsuits instigated against them.
This is only the first word concerning the causes of the event, and it'll take some time to sort out and see how accurate the BP report is considered, and if others will share more in paying for it.
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