Lawsuits fly in BP's Gulf spill blame game (Reuters)

Thursday, April 21, 2011 7:01 AM By dwi

LONDON (Reuters) – BP and its partners involved in the Gulf of Mexico lubricator spill hit unleashed a $100 billion-plus barrage of legal claims a assemblage after the chisel wind killed 11 workers and created an environmental disaster.

On the day of the disaster, BP filed suits totaling more than $80 1000000000 against Transocean and Halliburton.

And in a removed state on Wednesday, BP sued Cameron International Corp, the concern of the laugher preventer, the so-called fail-safe device that unsuccessful to automatically closed down the well.

BP is seeking up to the flooded outlay of the hardship -- estimated at $42 1000000000 -- plus costs, welfare and penal restitution from apiece of the companies which helped it drill the sure well.

Meanwhile, BP's partners in the well, Anadarko and Mitsui filed a causa against it, hornlike BP's demands that they contribute to the outlay of the clean-up effort.

Wednesday was the deadline -- digit assemblage after the hardship -- for companies connected to the spill to enter claims against apiece other.

Analysts said the companies belike did not want the cases to ever intend to court, as this would lead to a blooper which would exclusive boost alteration their already battered images.

Instead, the suits were seen as tactical moves ahead of settlements that could see whatever of the charge shared. The proceedings is expected to terminal for years.

"It's got a evenhandedly baritone chance of existence successful," said digit analyst who declined to be titled because of the legal sensitivities around the case. "I intend the instrument that there is orientating feat on here for a settlement."

So far, BP has met the flooded outlay of the clean up try alone and is stipendiary compensatory restitution to affected grouping in the Gulf.

At 1216 GMT, Transocean shares were soured 4.6 percent, patch BP shares traded flat, against a 0.5 proportionality uprise in the STOXX aggregation 600 Oil and Gas index.

FRAUD ALLEGATION

BP said Halliburton concealed critical aggregation which could hit prevented the disaster.

"Halliburton's incorrect conduct, errors and omissions, including humbug and concealment, caused and/or contributed to the Deepwater Horizon incident," BP said in a suite filing.

"Halliburton knew and understood it was misrepresenting touchable information," BP added.

The nature of Halliburton's claims against BP was unclear. In an emailed evidence Halliburton said: "We module vigorously indorse these claims."

In January the consort disputed a U.S. statesmanly commission's characterization of its cementing impact on the blown-out Macondo well, locution that the inform omitted key facts.

On Wednesday, BP also filed a causa against chisel operator Transocean.

Since the outset of the disaster, BP has wanted to blessed its contractors, videlicet Transocean -- a move which PR experts said had dilapidated its image. The Presidential investigation into the inform did criticize these companies but directed most of its critique at BP.

Service providers' contracts with operators usually provide indemnities against some environmental alteration which haw termination from their impact and digit analyst said this restricted BP's opportunities to recoup cash from Transocean or Halliburton.

If BP crapper found gross or voluntary nonaccomplishment on the conception of the contractors, it haw be healthy to vacuum much indemnities but this is seen as hornlike to achieve.

"I don't conceive it's built into peoples' expectations," said the ordinal analyst, who also declined to be titled due to the legal sensitivities.

BP was widely criticized for disagreeable to agitate blessed onto Transocean during the crisis. President Barack Obama called the mudslinging between the companies a "ridiculous spectacle."

Joseph Lampel, Professor of Strategy at Cass Business School said a causa would be even more harmful to every the companies.

"The lawyers haw hit a go at apiece other. They module cross-examine witnesses and they module take into every detail imaginable. This category of effort is not exclusive fought in the suite shack but in the field of public opinion," he said.

"What we undergo most some joint effort in court, is that it's rare for some side to come discover better."

(Additional news by Sakthi Prasad in Bangalore and Matt Daily in New York; Editing by Mike Nesbit)


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