Transocean Gets Favorable Ruling in Gulf Disaster (RIG, BP)
A federal judge in New Orleans has ruled that Transocean Ltd. (NYSE: RIG) is indemnified from paying compensatory damages related to the explosion and sinking of its Deepwater Horizon platform that killed 11 workers and spewed 5 million barrels of…
A federal judge in New Orleans has ruled that Transocean Ltd. (NYSE: RIG) is indemnified from paying compensatory damages related to the explosion and sinking of its Deepwater Horizon platform that killed 11 workers and spewed 5 million barrels of oil into the Gulf of Mexico. Transocean has claimed that the well’s owner, BP plc (NYSE: BP) has sole responsibility for the disaster.
The ruling did not give Transocean everything it sought, however. The company remains liable for punitive damages and civil fines and penalties related to violating the federal Clean Water Act.
In after-hours trading last night, Transocean gained more than 6% to $50.28. The company’s shares traded above $90 in early April 2010, before the explosion. BP traded lower after-hours, by about -1.4% at $44.18.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.