Today's Coming Crisis Movie

Thursday, April 21, 2011

Gulf of Mexico oil spill: BP sues Transocean for $40bn -- No, really, they're suing for damages

BP is suing Transocean, the owner of the oil rig that exploded in the Gulf of Mexico last year, for $40bn (£24.37bn) in damages.

BP said safety systems on Transocean's Deepwater Horizon rig had failed.

Separately, BP also sued the maker of the rig's blowout preventer, alleging the device failed to stop the huge oil spill that followed the explosion.

Both lawsuits were filed on Wednesday on the first anniversary of the explosion, which killed 11 workers.

Overnight on 20 April 2010, Transocean's Deepwater Horizon burst into flames while drilling a well for BP.

In the months that followed, more than 200 million gallons (780 million litres) of oil flowed in the Gulf of Mexico from the well, soiling hundreds of miles of coastline in the worst US oil spill in recent history.

In federal court in New Orleans on Wednesday, BP said Swiss-based Transocean and Cameron International, the Houston company that supplied the blowout preventer (BOP), should help it pay for tens of billions of dollars in liabilities resulting from the spill, which include clean-up and compensation costs.

BP also wants the court to declare that Cameron caused or contributed to the disaster.

"The Deepwater Horizon BOP was unreasonably dangerous, and has caused and continues to cause harm, loss, injuries, and damages to BP (and others) stemming from the blowout of Macondo well" and resulting spill, the BP lawsuit said. (read more)