Transocean (RIG) Places Macondo Incident Blame on BP (BP)
Tweet
Share
E-mailGet Alerts BP Hot Sheet
Price: $41.33 -0.17%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 6.8%
EPS Growth %: +67.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 6.8%
EPS Growth %: +67.8%
Join SI Premium – FREE
BP plc (NYSE: BP) shares are trading lower this morning, as Transocean (NYSE: RIG) has pointed its finger at the U.K.-based energy giant for blame of last years tragic Macondo incident.
According to a release from Transocean, which summarized an internal investigation by the Company, the incident which spilled about 5 billion gallons of crude into the Gulf of Mexico, was solely the fault of BP's neglience.
From the release: "The report concludes that the Macondo incident was the result of a succession of interrelated well design, construction, and temporary abandonment decisions that compromised the integrity of the well and compounded the likelihood of its failure. The decisions, many made by the operator, BP, in the two weeks leading up to the incident, were driven by BP's knowledge that the geological window for safe drilling was becoming increasingly narrow. Specifically, BP was concerned that downhole pressure -- whether exerted by heavy drilling mud used to maintain well control or by pumping cement to seal the well -- would exceed the fracture gradient and result in fluid losses to the formation, thus costing money and jeopardizing future production of oil."
Bp shares are down over 1 percent lower pre-market.
According to a release from Transocean, which summarized an internal investigation by the Company, the incident which spilled about 5 billion gallons of crude into the Gulf of Mexico, was solely the fault of BP's neglience.
From the release: "The report concludes that the Macondo incident was the result of a succession of interrelated well design, construction, and temporary abandonment decisions that compromised the integrity of the well and compounded the likelihood of its failure. The decisions, many made by the operator, BP, in the two weeks leading up to the incident, were driven by BP's knowledge that the geological window for safe drilling was becoming increasingly narrow. Specifically, BP was concerned that downhole pressure -- whether exerted by heavy drilling mud used to maintain well control or by pumping cement to seal the well -- would exceed the fracture gradient and result in fluid losses to the formation, thus costing money and jeopardizing future production of oil."
Bp shares are down over 1 percent lower pre-market.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BP cuts Q2 2026 production outlook, net debt expected to fall
- EU fails to pass 21st Russia sanctions package
- Piper Sandler lifts Halliburton, Patterson-UTI on stronger U.S. land outlook
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Crude OilSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
