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THE owner of the oil rig that exploded in the Gulf of Mexico, killing 11 people and causing a giant slick, has made a $270m (£182m) profit from insurance payouts for the disaster.
The revelation by Transocean, the world’s biggest offshore driller, will add to the political storm over the disaster. The company was hired by BP to drill the well.
The “accounting gain” arose because the $560m insurance policy Transocean took out on its Deepwater Horizon rig was greater than the value of the rig itself. Transocean has already received a cash payment of $401m with the rest due in the next few weeks.
The windfall, revealed in a conference call with analysts, will more than cover the $200m that Transocean expects to pay to survivors and their families and for higher insurance costs.
Originally posted by ken10
I heard that BP are only liable for a maximum of $50million for the catastrophe, and i assume you US citizens will be footing the rest?
May 4 (Bloomberg) -- BP Plc Chief Executive Officer Tony Hayward said he expects economic costs of the oil leak in the Gulf of Mexico to far exceed the $75 million federal limit on damages.
Originally posted by Gools
So did they do it for the insurance money?
The total cost of the clean-up and compensation could reach $30 billion, according to some estimates. Transocean said that virtually all of that must be covered by BP and two smaller partners, Anadarko Petroleum and Mitsui of Japan.
In a stock exchange filing, Transocean said that BP was contractually obliged to take “full responsibility for and defend, release and indemnify us from any loss, expense, claim, fine, penalty or liability for pollution or contamination”. Newman added: “Our industry has a long history of contract sanctity and we expect BP to honour that.”