Receive our newsletter – data, insights and analysis delivered to you
  1. News
February 15, 2015

Texas court blocks BP’s $750m Transocean insurance claim for 2010 oil spill

The Texas Supreme Court has rejected BP's claim for $750m worth of coverage under Transocean's insurance policies to help pay the damages related with the Gulf of Mexico oil spill in 2010.

The Texas Supreme Court has rejected BP’s claim for $750m worth of coverage under Transocean’s insurance policies to help pay the damages related with the Gulf of Mexico oil spill in 2010.

BP has already paid more than $28bn in damages and costs associated to the oil spill, which killed 11 people and spread oil across seafood grounds and coastal beaches.

The company contracted Transocean’s Deepwater Horizon drilling rig to develop Macondo well, located in the Gulf of Mexico.

"BP is not entitled to coverage under Transocean’s insurance policies for damages arising from sub-surface pollution because BP, not Transocean, assumed liability for such claims."

The court ruled that BP is not entitled to claim status as an additional insured party under Transocean’s liability policies as the company assumed responsibility for damages associated to subsurface well pollution in the contract it signed with Transocean.

The court said: "BP is not entitled to coverage under Transocean’s insurance policies for damages arising from sub-surface pollution because BP, not Transocean, assumed liability for such claims."

In September 2014, US District Judge Carl Barbier ruled that BP’s willful misconduct and gross negligence led to the Deepwater Horizon oil spill and the company cannot recoup the additional money paid out under the old accounting method.

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

The British oil and gas firm paid hundreds of millions of dollars to the alleged victims of the spill through multiple businesses between August 2012 and October 2013.

The well discharged millions of barrels of oil into the Gulf of Mexico, before eventually being capped in July 2010 and permanently sealed in the following September.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU