Judge Carl Barbier Says BP must Indemnify Halliburton for Compensatory Damage Claims Relating to Gulf Oil Spill

BP should cover some of direct damage claims awarded against Halliburton for the $40 billion in cleanup expenses and financial losses resulted by the April 2010 Macondo oil-well blowout and subsequent oil spill in the Gulf of Mexico.

U.S. District Judge Carl Barbier ruled that BP should indemnify Halliburton for compensatory damage claims under its drilling contract.

The British oil giant sued Halliburton, the Houston-based contractor who provided cementing services for the Deepwater Horizon oil rig, in April to recover a portion of any damages and costs from the spill. Barbier said BP doesn’t have to pay any punitive damages awarded against Halliburton.

In a ruling, Barbier wrote that BP should indemnify Halliburton for third-party compensatory claims originating from pollution or contamination that not arising from the property or equipment of Halliburton located above the surface of the land or water, even if the pollution was caused by Halliburton’s gross negligence.

Barbier said BP is needless to cover any civil penalties under the Clean Water Act against Halliburton.

Earlier, it had been ruled that BP must indemnify Transocean Ltd., the owner of the Deepwater Horizon rig that exploded and caused the 2010 Gulf of Mexico oil spill.

Last changed: Feb 02 2012 at 1:07 PM

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