Transocean to Petition to Limit Liability in Gulf Rig Blast . [View All]

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Source: WSJ

Transocean to Petition to Limit Liability in Gulf Rig Blast
By MARK LONG And ANGEL GONZALEZ
Transocean Ltd., the owner and operator of the Deepwater Horizon drilling rig that burned and sank last month unleashing a massive oil leak into the Gulf of Mexico, will Thursday file in federal court a petition to limit its liability to just under $27 million, according to a person familiar with the company's plans and a copy of the filing reviewed by Dow Jones Newswires.

The world's biggest offshore driller is filing the request in the U.S. District Court in Houston under a century-and-a-half-old law originally aimed at helping U.S. ship owners compete with foreign-flagged vessels. While the company may not succeed in limiting its financial liability, the filing could give Transocean an edge in what could be a lengthy, multipronged legal battle against claims for damages from the accident that killed 11 workers.

Dozens of lawsuits have already been filed against the drilling contractor in state and federal courts. BP PLC was leasing the rig from Transocean and is responsible for the costs of cleaning up the massive oil leak sprung by the accident that is threatening the environment and economy of the Gulf shore, according to government officials. Representatives from BP, Transocean and Halliburton Co., which supplied components used in the drilling process, came under fire from lawmakers in Congressional hearings this week, during which representatives from each company attempted to stave off blame for the disaster. It is unclear what the ultimate cost of the spill will be for each of these companies.

The accident and subsequent oil spill "were not caused or contributed to, done, occasioned and/or incurred by any fault, negligence, unseaworthiness, or lack of due care on the part of the petitioners, or anyone for whom petitioners are or at any material time were responsible," Transocean's filing says.


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