BP partner agrees $1.4bn Deepwater payout

The company which leased the Deepwater Horizon rig to oil giant BP has been fined $1.4bn (€1.06bn) after admitting its role in the Gulf of Mexico disaster.

BP partner agrees $1.4bn Deepwater payout

The company which leased the Deepwater Horizon rig to oil giant BP has been fined $1.4bn (€1.06bn) after admitting its role in the Gulf of Mexico disaster.

Swiss-based Transocean pleaded guilty to violating the Clean Water Act after its rig exploded in April 2010, killing 11 workers, and spilling millions of barrels of oil.

The deal with the US Department of Justice comes after BP agreed its own $4.5bn (€3.42bn) settlement with the US authorities in November, over criminal charges relating to the disaster.

The US Department of Justice said Transocean admitted its crew members were "negligent in failing fully to investigate clear indication that the Macondo well was not secure and that oil and gas were flowing into the well."

BP, which has long argued that it was not the only company responsible, said: "In settling, Transocean has acknowledged that it played a significant role and has responsibility for the accident. Transocean is finally starting, more than two-and-a-half years after the accident, to do its part for the Gulf Coast."

Under the terms of the proposed deal, Transocean will pay its fine over five years, and the Department of Justice will not pursue further prosecution of the company.

Assistant attorney general for the US Justice Department's Criminal Division Lanny Breuer said: "Transocean's rig crew accepted the direction of BP well site leaders to proceed in the face of clear danger signs - at a tragic cost to many of them.

"Transocean's agreement to plead guilty to a federal crime, and to pay a total of $1.4bn (€1.06bn) in criminal and civil penalties, appropriately reflects its role in the Deepwater Horizon disaster."

Halliburton, which was responsible for cementing the well, is the only company not to have settled over the disaster.

BP said: "Unfortunately, Halliburton continues to deny its significant role in the accident, including its failure to adequately cement and monitor the well."

more courts articles

Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman
Coronation Street actor William Roache (91) given three months to settle tax debt Coronation Street actor William Roache (91) given three months to settle tax debt

More in this section

Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
Lord Rothschild death Tony Blair leads tributes on death of financier Rothschild at age 87
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited