BP sues Halliburton for all oil-spill costs

Posted: January 3, 2012 Author: Kurt Niland Environmental

halliburton logo SQUARE 100x100 BP sues Halliburton for all oil spill costs filed a claim in federal court Monday seeking all costs and damages related to the 2010 from Halliburton, the Houston-based energy and well-completion services company the oil giant contracted to cement the blown-out Macondo well.

According to BP’s website, the company has spent more than $21 billion in cleanup efforts and compensation to individuals, businesses, and municipalities harmed by the oil spill. BP has dedicated $40 billion altogether to fund ongoing and financial recovery efforts in the wake of the disastrous oil spill, which erupted when the rig exploded and sank, killing 11 workers and releasing more than 200 million gallons of oil into the Gulf.

BP contracted Halliburton to make and pour the cement slurry for the Macondo well, which sat more than a mile beneath the Deepwater Horizon oil platform. The cement plays a critical role in deep-sea drilling operations; its performance in the well shaft can prevent or permit a blowout of oil and gas from deep within the oil reservoir.

In December, BP formally accused Halliburton of intentionally destroying cement samples, test results, and computer models that would have demonstrated the contractor’s culpability in the massive Gulf of Mexico oil spill. BP asked U.S. District Judge Judge Carl Barbier, who is presiding over the oil spill litigation, to consider these allegations ahead of February’s liability trial.

BP has reached agreements with all but two of the companies involved in the Deepwater Horizon drilling operation. Cameron International, Weatherford U.S. LP, Anadarko Petroleum Corp., and MOEX Offshore have reached settlements with BP totaling more than $5 billion.

Ltd, the owner-lessor of the Deepwater Horizon rig, and Halliburton insist the oil spill was the result of the actions of BP and its employees.  Additionally, Halliburton said in court papers that the cementing-services contract it signed with BP stipulates that it be indemnified from all damage claims, even if Halliburton employees share blame for the oil spill.

BP rejects Halliburton’s argument and accused the company of gross negligence in its court filing Monday.

BP, Halliburton, and Transocean are named as defendants in more than 500 lawsuits filed by Gulf Coast businesses, cities, and individuals since the oil spill.

Sources:

Bloomberg

Reuters

ABC

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  3. BP sues partner companies, claiming each played role in Gulf oil spill
  4. Federal report says BP and Halliburton knowingly used bad cement before oil rig blowout
  5. BP partner says it won't contribute to oil spill cleanup costs