Shares of Transocean (RIG) skyrocketed on the news the company reached a $1.4 billion settlement agreement with the United States Justice Department over the failure of the oil rig - the Deepwater Horizon.
Transocean, which is based in Switzerland, agreed to pay $1 billion in civil penalties and $400 million in criminal penalties. Also according to the court filing, Transocean plead guilty to violating the Clean Water Act of the United States.
The company stated, "These important agreements, which the company believes to be in the best interest of its shareholders and employees, remove much of the uncertainty associated with the accident. This is a positive step forward, but it is also a time to reflect on the 11 men who lost their lives aboard the Deepwater Horizon. Their families continue to be in the thoughts and prayers of all of us at Transocean."
As for the stock performance of the company, it removal of the uncertainty does help investors and shareholders a more complete look as to the consequences of the accident, which could continue to push the share price up over time.
Transocean had set aside $2 billion to meet the expected costs associated with the drilling rig failure.
The Justice Department has given Transocean two years to pay the $1 billion. The deal still must be approved by a federal judge to be official.
Transocean because of the lack of clarity on its liabilities connected to the failed oil rig, lost about $5.7 billion in 2011.
Shares of Transocean were trading up by $3.51, or 7.59%, as of 2:03 PM EST.
Showing posts with label Transocean. Show all posts
Showing posts with label Transocean. Show all posts
Thursday, January 3, 2013
Monday, April 2, 2012
Halliburton (HAL) (HERO) (RIG) (HFC) (CXO) (CVE) (KEG) (NOV) Ratings, Price Targets
Halliburton (HAL), Hercules Offshore, Inc. (HERO), Transocean (RIG), HollyFrontier (HFC), Concho Resources Inc. (CXO), Cenovus Energy (CVE), Key Energy (KEG) and National-Oilwell Varco, Inc. (NOV) had ratings and price targets on them adjusted by analysts.
Howard Weil downgraded Halliburton (HAL) from an "Outperform" rating to a "Market Perform" rating. $43.00
CLSA upgraded Hercules Offshore, Inc. (HERO) from an "Underperform" rating to a "Buy" rating.
CLSA upgraded Transocean (RIG) from an "Underperform" rating to an "Outperform" rating.
Credit Suisse downgraded HollyFrontier (HFC) from an "Outperform" rating to a "Neutral" rating.
Deutsche Bank upgraded Concho Resources Inc. (CXO) Hold" rating to a "Buy" rating.
Barclays Capital downgraded Cenovus Energy (CVE) from an "Overweight" rating to a "Equal Weight" rating.
Howard Weil Key Energy (KEG) from a "Focus Stock" rating to an "Outperform" rating. They have a price target of $20.00 on the company.
Howard Weil downgraded National-Oilwell Varco, Inc. (NOV) from an "Outperform" rating to a "Market Perform" rating.
Howard Weil downgraded Halliburton (HAL) from an "Outperform" rating to a "Market Perform" rating. $43.00
CLSA upgraded Hercules Offshore, Inc. (HERO) from an "Underperform" rating to a "Buy" rating.
CLSA upgraded Transocean (RIG) from an "Underperform" rating to an "Outperform" rating.
Credit Suisse downgraded HollyFrontier (HFC) from an "Outperform" rating to a "Neutral" rating.
Deutsche Bank upgraded Concho Resources Inc. (CXO) Hold" rating to a "Buy" rating.
Barclays Capital downgraded Cenovus Energy (CVE) from an "Overweight" rating to a "Equal Weight" rating.
Howard Weil Key Energy (KEG) from a "Focus Stock" rating to an "Outperform" rating. They have a price target of $20.00 on the company.
Howard Weil downgraded National-Oilwell Varco, Inc. (NOV) from an "Outperform" rating to a "Market Perform" rating.
Tuesday, January 17, 2012
Anadarko (APC) (CHK) (RIG) (CNX) (WLT) (GGC) Ratings, Price Targets
Anadarko Petroleum (NYSE: APC), Chesapeake Energy (NYSE: CHK), Transocean (NYSE: RIG), CONSOL Energy Inc. (NYSE: CNX), Walter Energy (NYSE: WLT) and Georgia Gulf (NYSE: GGC) ratings and price targets.
Anadarko Petroleum (APC) had its “Buy” rating reiterated by Canaccord Genuity.
Chesapeake Energy (CHK) had its “Buy” rating reiterated by Canaccord Genuity.
Transocean (RIG) had its “Buy” rating reiterated by Jefferies Group (NYSE:JEF).
Deutsche Bank (NYSE:DB) initiated coverage on CONSOL Energy Inc. (CNX). They placed a “Buy” rating and a price target of $50.00 on the company.
Walter Energy (WLT) had its price target lowered by FBR Capital from $90.00 to $82.00. They have a “Market Perform” rating on the company.
Georgia Gulf (GGC) had its price target raised by Dahlman Rose from $35.00 to $45.00. They have a “Buy” rating on the company.
Anadarko Petroleum (APC) had its “Buy” rating reiterated by Canaccord Genuity.
Chesapeake Energy (CHK) had its “Buy” rating reiterated by Canaccord Genuity.
Transocean (RIG) had its “Buy” rating reiterated by Jefferies Group (NYSE:JEF).
Deutsche Bank (NYSE:DB) initiated coverage on CONSOL Energy Inc. (CNX). They placed a “Buy” rating and a price target of $50.00 on the company.
Walter Energy (WLT) had its price target lowered by FBR Capital from $90.00 to $82.00. They have a “Market Perform” rating on the company.
Georgia Gulf (GGC) had its price target raised by Dahlman Rose from $35.00 to $45.00. They have a “Buy” rating on the company.
Friday, May 27, 2011
Petrobras (PBR) (APC) (RIG) (RDS-A) (CAM) Jump While Oil Futures Pull Back
Petrobras (NYSE:PBR), Anadarko (NYSE:APC), Transocean (NYSE:RIG), Royal Dutch Shell (NYSE:RDS-A) and Cameron International (NYSE:CAM) all closed up Thursday, bucking the trend of oil futures pulling back after climbing over $101 a barrel on Wednesday.
Obama's economy continues to crumble as first-time unemployment claims surged by close to 10,000, exploding past the anticipated decline of 4,000 economists had been expecting. That is a seasonally adjusted 424,000 for the week ended May 21.
The U.S. economy growth rate was also worst than expected, growing at a very weak 1.8 percent rate in the first quarter, falling from the 3.1 percent growth rate in the fourth quarter, and missing the 2.2 percent growth rate economists had projected.
The U.S. Labor Department also upwardly revised initial unemployment claims from the last report they issued.
All of this had an impact on oil prices, as oil futures ended lower Thursday. Light, sweet crude for July delivery settled down $1.09, or 1.1 percent, to $100.23 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled up 12 cents, or 0.1 percent, to $115.05 a barrel.
Front-month June reformulated gasoline blendstock, settled up 3.21 cents, or 1.1 percent, to $3.0483 a gallon. June heating oil was up 0.26 cent, or 0.1 percent, to $2.9829 a gallon.
With the Memorial Day weekend coming in the U.S., which usually involves heavy travel and usage of gasoline in vehicles, it probably counteracted the slightly lower price of oil and gas heading into the summer season.
Petrobras closed Thursday at $34.15, gaining $0.50, or 1.49 percent. Cameron International closed at $48.33, up $0.56, or 1.17 percent. Royal Dutch Shell soared to $70.28, surging $1.27, or 1.84 percent. Transocean ended the session at $69.36, rising $0.30, or 0.43 percent. Anadarko closed at $77.89, up $0.67, or 0.87 percent.
Obama's economy continues to crumble as first-time unemployment claims surged by close to 10,000, exploding past the anticipated decline of 4,000 economists had been expecting. That is a seasonally adjusted 424,000 for the week ended May 21.
The U.S. economy growth rate was also worst than expected, growing at a very weak 1.8 percent rate in the first quarter, falling from the 3.1 percent growth rate in the fourth quarter, and missing the 2.2 percent growth rate economists had projected.
The U.S. Labor Department also upwardly revised initial unemployment claims from the last report they issued.
All of this had an impact on oil prices, as oil futures ended lower Thursday. Light, sweet crude for July delivery settled down $1.09, or 1.1 percent, to $100.23 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled up 12 cents, or 0.1 percent, to $115.05 a barrel.
Front-month June reformulated gasoline blendstock, settled up 3.21 cents, or 1.1 percent, to $3.0483 a gallon. June heating oil was up 0.26 cent, or 0.1 percent, to $2.9829 a gallon.
With the Memorial Day weekend coming in the U.S., which usually involves heavy travel and usage of gasoline in vehicles, it probably counteracted the slightly lower price of oil and gas heading into the summer season.
Petrobras closed Thursday at $34.15, gaining $0.50, or 1.49 percent. Cameron International closed at $48.33, up $0.56, or 1.17 percent. Royal Dutch Shell soared to $70.28, surging $1.27, or 1.84 percent. Transocean ended the session at $69.36, rising $0.30, or 0.43 percent. Anadarko closed at $77.89, up $0.67, or 0.87 percent.
Friday, November 5, 2010
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) Up on Rising Oil Prices
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) were all in positive territory Thursday on the inflationary measures announced by the Federal Reserve through QE2, which drove the overall commodity market up, along with companies within each sector, including the oil producers.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Thursday, November 4, 2010
Transocean (NYSE:RIG) Earnings Crushed on Gulf Spill Effects
Earnings for Transocean fell of the cliff to the tune of 48 percent from the same quarter last year, as effects of the BP (NYSE:BP) Gulf oil spill linger, and uncertainty over liability and when drilling in the Gulf will resume weighs on the company, as it does on all with exposure to the oil spill.
Particularly harmful was the oil moratorium, which while officially lifted, effectively remains in place because of the permitting process and time it will take to comply with new regulations put in place.
Net income for the quarter plummeted to $368 million, or $1.15 a share, down from $710 million, or $2.20 a share last year.
Revenue was also down, falling from $2.82 to $2.31 year over year.
While analysts had expected a drop in performance, it was much worse than the expected $2.47 billion in revenue and $1.36 earnings per share looked for.
Costs were a major factor, with an increase in insurance premiums, lawsuits, one-time costs, and retiring debt all taking a toll on the company's performance.
Particularly harmful was the oil moratorium, which while officially lifted, effectively remains in place because of the permitting process and time it will take to comply with new regulations put in place.
Net income for the quarter plummeted to $368 million, or $1.15 a share, down from $710 million, or $2.20 a share last year.
Revenue was also down, falling from $2.82 to $2.31 year over year.
While analysts had expected a drop in performance, it was much worse than the expected $2.47 billion in revenue and $1.36 earnings per share looked for.
Costs were a major factor, with an increase in insurance premiums, lawsuits, one-time costs, and retiring debt all taking a toll on the company's performance.
Monday, November 1, 2010
Halliburton (NYSE:HAL), Transocean (NYSE:RIG), Anadarko (NYSE:APC), Cameron (NYSE:CAM), Mitsui (Nasdaq:MITSY): Will They Pay BP (NYSE:BP) Anything?
Even though there are agreements in place which indemnify or protect oil companies like Halliburton (NYSE:HAL), Transocean (NYSE:RIG), Anadarko Petroleum (NYSE:APC) and Cameron International (NYSE:CAM) from liability in most cases, in reference to the BP (NYSE:BP) oil spill, it's hard to imagine they'll escape completely form bearing some responsibility in the matter.
The courts have said sometime in 2011 they should reach a conclusion concerning that, although in some cases, like the blowout preventer provided by Cameron International, it's going to take some time to accurately investigate it to see where the failure came.
The recent conclusion of the oil spill commission that Halliburton provided an unstable cement mix used to seal the failed oil well puts pressure on these companies as to whether or not the indemnity agreements will hold under that type of scrutiny.
BP could be helped immensely if all of these companies would have to share in paying for the disaster, as since they've already been paying for almost everything, for them it would be money returned, which could dramatically improve their financial health whe spread across the companies mentioned above. It would be a game changer for them.
For the other companies mentioned above, there is more at risk though, as if they're considered negligent and liable in some ways, there is no doubt more lawsuits will emerge which will cost them and change their financial circumstances and reputation management will have to ensue.
There is also the increased costs of legal battles and insuring their debt via credit-default swaps.
So while BP, other than awaiting the final determination of whether or not they were grossly negligent in the accident, which could result in a fine of up to $17.6 billion, they have faced pretty much the worst case scenario and are coming out on the other side of it, as far as understanding their liabilities.
The other companies are now entering into the stage of uncertainty in relationship to liability, and that could weigh on the stocks for some time until that is cleared away.
Halliburton's role in the cement job reminds shareholders and investors that the situation is far from being resolved for all parties involved.
The courts have said sometime in 2011 they should reach a conclusion concerning that, although in some cases, like the blowout preventer provided by Cameron International, it's going to take some time to accurately investigate it to see where the failure came.
The recent conclusion of the oil spill commission that Halliburton provided an unstable cement mix used to seal the failed oil well puts pressure on these companies as to whether or not the indemnity agreements will hold under that type of scrutiny.
BP could be helped immensely if all of these companies would have to share in paying for the disaster, as since they've already been paying for almost everything, for them it would be money returned, which could dramatically improve their financial health whe spread across the companies mentioned above. It would be a game changer for them.
For the other companies mentioned above, there is more at risk though, as if they're considered negligent and liable in some ways, there is no doubt more lawsuits will emerge which will cost them and change their financial circumstances and reputation management will have to ensue.
There is also the increased costs of legal battles and insuring their debt via credit-default swaps.
So while BP, other than awaiting the final determination of whether or not they were grossly negligent in the accident, which could result in a fine of up to $17.6 billion, they have faced pretty much the worst case scenario and are coming out on the other side of it, as far as understanding their liabilities.
The other companies are now entering into the stage of uncertainty in relationship to liability, and that could weigh on the stocks for some time until that is cleared away.
Halliburton's role in the cement job reminds shareholders and investors that the situation is far from being resolved for all parties involved.
Halliburton (NYSE:HAL) Share Price Driven by Headlines in Near Term on BP (NYSE:BP) Cement Job
There is no doubt in the short term that Halliburton (NYSE:HAL) shares will fluctuate based on headlines related to uncertainties surrounding the cement job which was identified as unstable by the oil spill commission investigating the cement mixture used on BP's (NYSE:BP) Macondo well.
As the smoke clears some though, a number of financial institutions consider the risk is small for ancillary companies like Halliburton, and believe will be indemnified in the incident.
Canaccord said, "While not a smoking gun, the findings do put more focus on HAL’s cementing role in the Macondo incident. However, do keep in mind that BP made all final decisions, and an unstable cement test alone does not put liability on HAL. In short, we believe that BP remains operator with full responsibility, and HAL still has indemnification protection, from reservoir pollution or contamination, outside of gross negligence (as stated in its service contract with BP, posted in response to today’s letter)."
"Chevron (NYSE:CVX) will discuss the report at the public hearing on Nov 9. Expect headlines to drive stock near term. Market has generally dismissed significant liability for other third-party contractors involved, such as Transocean (NYSE:RIG) and Cameron (NYSE:CAM), whose operations have also been called into question. In other words, we believe the market has scrutinized third-party liability and contract indemnity over the past 6 months, and has come away anticipating BP to bear the full brunt of financial responsibility."
Halliburton closed Friday at $31.86, gaining $0.18, or 0.57 percent. Canaccord has a price target of $45 on the oil services company.
As the smoke clears some though, a number of financial institutions consider the risk is small for ancillary companies like Halliburton, and believe will be indemnified in the incident.
Canaccord said, "While not a smoking gun, the findings do put more focus on HAL’s cementing role in the Macondo incident. However, do keep in mind that BP made all final decisions, and an unstable cement test alone does not put liability on HAL. In short, we believe that BP remains operator with full responsibility, and HAL still has indemnification protection, from reservoir pollution or contamination, outside of gross negligence (as stated in its service contract with BP, posted in response to today’s letter)."
"Chevron (NYSE:CVX) will discuss the report at the public hearing on Nov 9. Expect headlines to drive stock near term. Market has generally dismissed significant liability for other third-party contractors involved, such as Transocean (NYSE:RIG) and Cameron (NYSE:CAM), whose operations have also been called into question. In other words, we believe the market has scrutinized third-party liability and contract indemnity over the past 6 months, and has come away anticipating BP to bear the full brunt of financial responsibility."
Halliburton closed Friday at $31.86, gaining $0.18, or 0.57 percent. Canaccord has a price target of $45 on the oil services company.
Monday, October 25, 2010
BP (NYSE:BP), Chevron (NYSE:CVX), Transocean (NYSE:RIG), Exxon (NYSE:XOM), Conoco (NYSE:COP), Shell (NYSE:RDS-A), Diamond (NYSE:DO), Hercules (Nasdaq:HERO) Have 100s of Wells Waiting for Approval in Gulf
Although BOEMRE director Michael Bromwich has said ther are only 10 new wells waiting for permits in the Gulf of Mexico, companies like BP (NYSE:BP), Chevron (NYSE:CVX), Transocean (NYSE:RIG), Exxon (NYSE:XOM), Conoco (NYSE:COP), Shell (NYSE:RDS-A), Diamond (NYSE:DO) and Hercules (Nasdaq:HERO) in fact have hundreds of wells waiting to be approved.
The disingenuous figures put forth by Bromwich are so small because hundreds of wells haven't been approved to enter into the permitting process.
There are 69 exploration and development plans are backlogged, just sitting there awaiting action, with each one including three to five wells, according to senior vice president and general counsel of Hercules, James W. Noe. And that was as of August 17. Since then no figures have been released, suggesting far more waiting to have decisions made.
Since the moratorium was lifted on October 12, there have only been six permits approved by the Bureau of Ocean Energy Management, Regulation and
Enforcement, and those were only in shallow-water areas, not the deepwater sections which allegedly have had the moratorium lifted.
I say allegedly because the regulations and permits are effectively having the same results as if a moratorium were still in place for deepwater drilling.
The disingenuous figures put forth by Bromwich are so small because hundreds of wells haven't been approved to enter into the permitting process.
There are 69 exploration and development plans are backlogged, just sitting there awaiting action, with each one including three to five wells, according to senior vice president and general counsel of Hercules, James W. Noe. And that was as of August 17. Since then no figures have been released, suggesting far more waiting to have decisions made.
Since the moratorium was lifted on October 12, there have only been six permits approved by the Bureau of Ocean Energy Management, Regulation and
Enforcement, and those were only in shallow-water areas, not the deepwater sections which allegedly have had the moratorium lifted.
I say allegedly because the regulations and permits are effectively having the same results as if a moratorium were still in place for deepwater drilling.
Tuesday, October 19, 2010
Transocean (NYSE:RIG): Light at the End of the Tunnel?
Based on a couple of assumptions, Natixis Bleichroeder said Transocean (NYSE:RIG) may be out of the woods, upgrading the company to "Buy."
"In our previous update for Transocean, we had assumed lower dayrates for deepwater rigs drilling in the U.S. Gulf of Mexico based on uncertainties surrounding the Macondo incident. With the end of the deepwater moratorium, renegotiations on most contract disputes, and lack of successful force majeure proceedings, we believe that most contracts will be honored at their original contracted dayrates. Assuming BP (NYSE:BP)honors its contractual indemnity with RIG, and based on Transocean's history as a premiere offshore driller, we believe that RIG is likely “out of the woods,” said Natixis
The market seemed to agree with them Monday, as Transocean closed at $68.38, gaining $1.30, or 1.94 percent. Volume for the day was 5,242,999, down from the 3-month daily average of 8,361,270.
"In our previous update for Transocean, we had assumed lower dayrates for deepwater rigs drilling in the U.S. Gulf of Mexico based on uncertainties surrounding the Macondo incident. With the end of the deepwater moratorium, renegotiations on most contract disputes, and lack of successful force majeure proceedings, we believe that most contracts will be honored at their original contracted dayrates. Assuming BP (NYSE:BP)honors its contractual indemnity with RIG, and based on Transocean's history as a premiere offshore driller, we believe that RIG is likely “out of the woods,” said Natixis
The market seemed to agree with them Monday, as Transocean closed at $68.38, gaining $1.30, or 1.94 percent. Volume for the day was 5,242,999, down from the 3-month daily average of 8,361,270.
Friday, October 15, 2010
BP (NYSE:BP) Slammed with Another Bill from Uncle Sam
For the seventh time since the Gulf of Mexico oil spill, BP (NYSE:BP) has received a bill from Uncle Sam, this time for $62.6 million, related to cleanup costs resulting from the spill.
So far BP, along with other "responsible parties" like Anadarko (NYSE:APC), Transocean (NYSE:RIG) and MOEX via Mitsui (NYSE:MITSY), which they have a majority ownership in.
Among the costs being billed for are to take care of actual damage, permanently stopping the leak, oil cleanup, public health, and protection of the coastline.
This bill brings the total billed by and paid to the government of $581 million.
Included in the billing is state costs along with the costs related to federal expenses.
So far BP, along with other "responsible parties" like Anadarko (NYSE:APC), Transocean (NYSE:RIG) and MOEX via Mitsui (NYSE:MITSY), which they have a majority ownership in.
Among the costs being billed for are to take care of actual damage, permanently stopping the leak, oil cleanup, public health, and protection of the coastline.
This bill brings the total billed by and paid to the government of $581 million.
Included in the billing is state costs along with the costs related to federal expenses.
Monday, October 11, 2010
BP (NYSE:BP) Oil Spill Cases to be Headed Up by Gulf Lawyers
Lawyers from Louisiana, Texas and Florida have been appointed by U.S. District Judge Carl Barbier to oversee the oil spill cases, which includes a steering committee of 15 members.
Appointed by Barbier are Stephen Herman of New Orleans, Brian H. Barr of Pensacola, Florida, James Roy of Layafette, Louisiana, and Scott Summy of Dallas.
Reportedly well over 100 lawyers applied to be part of the steering committee, which means millions for the lawyers involved.
The majority of the lawsuits in questions are class actions against BP (NYSE:BP), Transocean (NYSE:RIG), Halliburton (NYSE:HAL), Cameron International (NYSE:CAM), Anadarko (NYSE:APO) and Mitsui Oil Exploration (NasdaqGS:MITSY), which is majority-owned by MOEX.
Transocean was the owner of the rig and had leased it to BP.
BP is a 65 percent partner in the Macondo Well, Anadarko 25 percent, and Mitsui 10 percent.
The blowout preventer remains a problem, as it'll take a long time for tests to be done on the device to conclude why it failed to do its job.
With that being the key piece of evidence, it's hard to see how some of these lawsuits could go forward until that part of the investigation is completed.
Appointed by Barbier are Stephen Herman of New Orleans, Brian H. Barr of Pensacola, Florida, James Roy of Layafette, Louisiana, and Scott Summy of Dallas.
Reportedly well over 100 lawyers applied to be part of the steering committee, which means millions for the lawyers involved.
The majority of the lawsuits in questions are class actions against BP (NYSE:BP), Transocean (NYSE:RIG), Halliburton (NYSE:HAL), Cameron International (NYSE:CAM), Anadarko (NYSE:APO) and Mitsui Oil Exploration (NasdaqGS:MITSY), which is majority-owned by MOEX.
Transocean was the owner of the rig and had leased it to BP.
BP is a 65 percent partner in the Macondo Well, Anadarko 25 percent, and Mitsui 10 percent.
The blowout preventer remains a problem, as it'll take a long time for tests to be done on the device to conclude why it failed to do its job.
With that being the key piece of evidence, it's hard to see how some of these lawsuits could go forward until that part of the investigation is completed.
Tuesday, October 5, 2010
Transocean (NYSE:RIG) Has Class Action Lawsuit Filed Against Them
Owner of the Deepwater Horizon oil rig involved with the BP (NYSE:BP) oil spill, Transocean (NYSE:RIG), had a class action lawsuit filed against them by Scott+Scott LLP, which includes their former CEO and the former CEO of GlobalSantaFe Corporation, which they merged with.
Their press release stated:
"The complaint in this action alleges that, on October 2, 2007, in advance of a planned shareholder vote regarding the proposed merger of Transocean and GlobalSantaFe, Defendants disseminated a proxy statement to the Class that contained untrue statements of material facts and omitted to state material facts necessary to make the statements that were made not misleading in violation of §14(a) of the Exchange Act and SEC Rule 14a-9 promulgated thereunder. Specifically, Transocean is
alleged to have misrepresented the quality of its drilling fleet and its safety practices. In fact, as was first revealed by the Deepwater Horizon disaster and its aftermath, Transocean was dramatically underinvesting in safety and exposing itself to a high risk of a catastrophic event. The false proxy induced the Class to approve the merger with Transocean for inadequate consideration, thereby harming the Class."
The lawsuit was filed against Transocean on September 30, 2010.
Their press release stated:
"The complaint in this action alleges that, on October 2, 2007, in advance of a planned shareholder vote regarding the proposed merger of Transocean and GlobalSantaFe, Defendants disseminated a proxy statement to the Class that contained untrue statements of material facts and omitted to state material facts necessary to make the statements that were made not misleading in violation of §14(a) of the Exchange Act and SEC Rule 14a-9 promulgated thereunder. Specifically, Transocean is
alleged to have misrepresented the quality of its drilling fleet and its safety practices. In fact, as was first revealed by the Deepwater Horizon disaster and its aftermath, Transocean was dramatically underinvesting in safety and exposing itself to a high risk of a catastrophic event. The false proxy induced the Class to approve the merger with Transocean for inadequate consideration, thereby harming the Class."
The lawsuit was filed against Transocean on September 30, 2010.
Monday, October 4, 2010
BP (NYSE:BP) Oil Spill Doesn't Slow Down Offshore Oil Exploration, Drilling
All around the world the huge demand for oil continues to generate more offshore oil exploration and drilling, even with the BP (NYSE:BP) oil spill, with Cuba being the latest to enter the sector, saying exploration rigs will probably start drilling off their coast some time in 2011.
That would bring them very close to the coast of Florida, about 45 miles away.
Cuba is expected to drill even deeper than the Deepwater Horizon oil rig owned by Transocean (NYSE:RIG), which was leased to BP in the accident.
Chevron (NYSE:CVX) and Canada also revealed they had quietly been drilling off the coast of Newfoundland during the BP Gulf of Mexico crisis, finishing a well there about a month ago.
There are also too many projects to follow off of Africa and many other regions of the world.
The bottom line is offshore and deepwater drilling isn't going to go away, and will only increase.
America better respond accordingly and quit over-responding to a one-time event and free up the waters for more exploration and drilling, including many of the onshore areas as well.
Eventually that will happen, as demand will require it. It's only costing billions more to do it because of radical and controversial environmental groups who think they can stop the energy demands around the world. All they're doing is making it more expensive to do.
Oil companies should start to battle back and sue them into oblivion, charging them with criminal acts as Chevron recently did. They backed off quickly when facing fines.
There's absolutely nothing that will stop the increase of demand for oil, and nothing will stop offshore deepwater drilling.
Whether America or American-based companies benefit from it in the long run will be determined by them. The rest of the world will continue exploring for, drilling and discovering oil.
That isn't going to stop happening for decades, if not more, into the future.
That would bring them very close to the coast of Florida, about 45 miles away.
Cuba is expected to drill even deeper than the Deepwater Horizon oil rig owned by Transocean (NYSE:RIG), which was leased to BP in the accident.
Chevron (NYSE:CVX) and Canada also revealed they had quietly been drilling off the coast of Newfoundland during the BP Gulf of Mexico crisis, finishing a well there about a month ago.
There are also too many projects to follow off of Africa and many other regions of the world.
The bottom line is offshore and deepwater drilling isn't going to go away, and will only increase.
America better respond accordingly and quit over-responding to a one-time event and free up the waters for more exploration and drilling, including many of the onshore areas as well.
Eventually that will happen, as demand will require it. It's only costing billions more to do it because of radical and controversial environmental groups who think they can stop the energy demands around the world. All they're doing is making it more expensive to do.
Oil companies should start to battle back and sue them into oblivion, charging them with criminal acts as Chevron recently did. They backed off quickly when facing fines.
There's absolutely nothing that will stop the increase of demand for oil, and nothing will stop offshore deepwater drilling.
Whether America or American-based companies benefit from it in the long run will be determined by them. The rest of the world will continue exploring for, drilling and discovering oil.
That isn't going to stop happening for decades, if not more, into the future.
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).
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).
Friday, September 17, 2010
Judge Extends BP (NYSE:BP) Lawsuit Claims Until April 2011
A battle over time has been engaged in the hundreds of lawsuits filed against BP (NYSE:BP) and other companies related to the Gulf oil spill, and the judge has issued several decisions in response to it.
Judge Carl Barbier, the judge overseeing the cases, said as far as the time-frame to file lawsuits against the defendants, plaintiffs will be given until April 20, 2011. That's exactly a year since the explosion on the Deepwater Horizon oil rig which led to 11 deaths and oil spilling into the Gulf.
As far as the limitation of liability in connection to Transocean (NYSE:RIG), a trial date has been set for October 2011 do deal with that issue.
Lawyers for the plaintiffs have been pushing for things to go quicker, while BP and others have said they need more time to produce evidence. The judge in that area has sided with the defendants, saying they need a realistic amount of time to mount a defense.
Over the issue of whether or not plaintiffs should be required to go through the $20 billion compensation fund set up by BP to see if they qualify before being allowed to file a lawsuit, the judge hasn't made a ruling on that yet.
Judge Carl Barbier, the judge overseeing the cases, said as far as the time-frame to file lawsuits against the defendants, plaintiffs will be given until April 20, 2011. That's exactly a year since the explosion on the Deepwater Horizon oil rig which led to 11 deaths and oil spilling into the Gulf.
As far as the limitation of liability in connection to Transocean (NYSE:RIG), a trial date has been set for October 2011 do deal with that issue.
Lawyers for the plaintiffs have been pushing for things to go quicker, while BP and others have said they need more time to produce evidence. The judge in that area has sided with the defendants, saying they need a realistic amount of time to mount a defense.
Over the issue of whether or not plaintiffs should be required to go through the $20 billion compensation fund set up by BP to see if they qualify before being allowed to file a lawsuit, the judge hasn't made a ruling on that yet.
Thursday, September 16, 2010
Mexican States Sue BP (NYSE:BP) Over Oil Spill
The Mexican states of Veracruz, Quintana Roo and Tamaulipas have filed a lawsuit against BP (NYSE:BP) over the Gulf of Mexico oil spill, alleging losses from the disaster.
All the states have coasts on the Gulf of Mexico.
According to attorney Enrique Serna, "The three states have accrued a good amount of damages as a result of the spill." There are expectations the damages will continue to grow, added Serna.
Other companies connected to the oil spill who were also sued by the three Mexican states are Halliburton (NYSE:HAL), Transocean (NYSE:RIG) and Cameron International Corp. (NYSE:CAM).
Serna strangely said that the so-called and unproven underwater oil "plume" will eventually reach Mexico's fishing waters as cold fronts move into the area.
The fictitious plume is just that, and hasn't been found, and was only asserted to exist by some so-called scientist two months before they reported it.
Somehow it mysteriously disappeared and is nowhere to be found, even though it was alleged to be gigantic.
To base part of his case on that is pretty thin and weak, and hopefully will be thrown out by the judge.
All the states have coasts on the Gulf of Mexico.
According to attorney Enrique Serna, "The three states have accrued a good amount of damages as a result of the spill." There are expectations the damages will continue to grow, added Serna.
Other companies connected to the oil spill who were also sued by the three Mexican states are Halliburton (NYSE:HAL), Transocean (NYSE:RIG) and Cameron International Corp. (NYSE:CAM).
Serna strangely said that the so-called and unproven underwater oil "plume" will eventually reach Mexico's fishing waters as cold fronts move into the area.
The fictitious plume is just that, and hasn't been found, and was only asserted to exist by some so-called scientist two months before they reported it.
Somehow it mysteriously disappeared and is nowhere to be found, even though it was alleged to be gigantic.
To base part of his case on that is pretty thin and weak, and hopefully will be thrown out by the judge.
Transocean (NYSE:RIG) Seeking to Limit BP (NYSE:BP) Oil Spill Liability
The trial to decide on whether or not Transocean (NYSE:RIG) will be allowed to limit its liability in relationship to the BP (NYSE:BP) oil spill could start in September 2011.
Transocean asserts that under maritime law its financial liability in the case should be capped at $26.7 million. The parameters of the law are exposure is limited to the value of the cargo of the ship and the ship's value itself.
There are other cases as well which will be ultimately be considered test cases, with eight possible suits being designated as such in relationship to the maritime law mentioned above, the Oil Pollution Act, and a wrongful death claim.
Which cases will be designated at trial cases will be decided by plaintiffs' lawyers.
Transocean asserts that under maritime law its financial liability in the case should be capped at $26.7 million. The parameters of the law are exposure is limited to the value of the cargo of the ship and the ship's value itself.
There are other cases as well which will be ultimately be considered test cases, with eight possible suits being designated as such in relationship to the maritime law mentioned above, the Oil Pollution Act, and a wrongful death claim.
Which cases will be designated at trial cases will be decided by plaintiffs' lawyers.
Lawyers Pushing for Quicker BP (NYSE:BP) Trials
In court filings today, lawyers for alleged victims of the BP (NYSE:BP) oil spill said the first test-case trials should begin in about a year.
Lawyers have been seeking quicker trials for the claimants, while BP and others like Transocean (NYSE:RIG) have wanted to wait to see what happens with the compensation fund, which claims portion is headed by Kenneth Feinberg.
U.S. District Judge Carl Barbier in New Orleans, who is presiding over the trials, was told by lawyers pretrial exchanges of information should begin in October.
BP pushed back saying in it's filing that it's premature at this time to demand early trials, saying it's "overly ambitious."
There are about 400 lawsuits related to the oil spill which Judge Barbier is overseeing.
Lawyers have been seeking quicker trials for the claimants, while BP and others like Transocean (NYSE:RIG) have wanted to wait to see what happens with the compensation fund, which claims portion is headed by Kenneth Feinberg.
U.S. District Judge Carl Barbier in New Orleans, who is presiding over the trials, was told by lawyers pretrial exchanges of information should begin in October.
BP pushed back saying in it's filing that it's premature at this time to demand early trials, saying it's "overly ambitious."
There are about 400 lawsuits related to the oil spill which Judge Barbier is overseeing.
Another Transocean (NYSE:RIG) Oil Rig Leaving Gulf
The news gets worse in light of the misguided Obama oil moratorium which continues to crush the Gulf region, as over 20,000 workers remain out of work because of the decision, while a fourth rig is now about to leave the region permanently, with Transocean (NYSE:RIG) saying they'll be removing a second rig from the area, while Diamond Offshore Drilling Inc (NYSE:DO) has already removed two.
Diamond and Anadarko (NYSE:APC) are in a battle over a third oil rig, which Anadarko wants to cancel the contract because of the moratorium.
Transocean CEO Steven Newman said concerning Gulf drilling activity, that there will probably be no meaningful continuation until sometime in 2011.
The growing idea is the regulatory atmosphere will probably result in a much less robust Gulf drilling area, and loss of thousands of jobs on a permanent basis.
Hopefully that will change after the mid-term elections.
Diamond and Anadarko (NYSE:APC) are in a battle over a third oil rig, which Anadarko wants to cancel the contract because of the moratorium.
Transocean CEO Steven Newman said concerning Gulf drilling activity, that there will probably be no meaningful continuation until sometime in 2011.
The growing idea is the regulatory atmosphere will probably result in a much less robust Gulf drilling area, and loss of thousands of jobs on a permanent basis.
Hopefully that will change after the mid-term elections.
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