• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 9 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 30 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 7 mins Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 13 hours Mr
  • 22 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 2 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 10 hours Free market or Freeloading off the work of others?
  • 1 day What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 day How to Create a Pandemic
  • 12 hours Marine based energy generation
  • 17 hours Which producers will shut in first?
  • 1 day Real Death Toll In CCP Virus May Be 12X Official Toll

Breaking News:

WTI Slides On Huge Crude Inventory Build

Alt Text

OPEC’s Plan To Take Over The Global Oil Industry

Much of the commentary surrounding…

Alt Text

Big Oil Raises Debt To Ride Out Price Crash

As prices crashed, the supermajors…

Alt Text

Trump: Free Markets Will Determine U.S. Oil Production

U.S. President Trump believes local…

Andy Tully

Andy Tully

Andy Tully is a veteran news reporter who is now the news editor for Oilprice.com

More Info

Premium Content

Halliburton Agrees To Pay $1.1 Billion To Avoid Future Claims

Halliburton Co. has reached a settlement in U.S. District Court in New Orleans to pay $1.1 billion to resolve most of the claims against it arising from the Deepwater Horizon oil spill in the Gulf of Mexico in a deal the company says could save it billions in future claims.

The settlement, announced Sept. 2, must be approved by a federal court. The money, from a $1.3 billion fund that Halliburton had set aside for costs related to the spill, will be held in escrow until all appeals are exhausted, then will be paid out in three installments.

The Deepwater Horizon oil rig off the Louisiana coast was drilling for oil at the Macondo oil field on April 20, 2010 when it blew up, killing 11 workers. It spilled 4.9 million barrels of crude oil into the Gulf of Mexico, according to U.S. government estimates.

Other defendants in the case are BP of Britain, which owned the rights to the Macondo oil field and has paid out about $28 billion to date, and rig contractor Transocean Ltd., which will pay out $1.4 billion.

Halliburton, an oilfield services company, was responsible for cementing services for the drilling operation. It has been accused of doing a shoddy job, but Halliburton says it was merely following BP’s instructions.

The $1.1 billion settlement is far less than Halliburton might have paid if it continued to resist a settlement. Now, it says, the agreement disposes of “a substantial majority” of its liability in the Deepwater Horizon disaster.

The decision eliminates much of the uncertainty that Halliburton has faced since the spill as investors awaited the outcome of the court action. Now that the settlement is less than what Halliburton had set aside for potential costs, investors see the settlement as a “non event,” Luke Lemoine, an analyst at Capital One Southcoast in New Orleans, told Bloomberg Business Week.

U.S. District Judge Carl Barbier, who is overseeing the case, is expected to rule soon on how much blame each company carries for the disaster. A decision that Halliburton was guilty of fraud and gross negligence would have left it liable to billions of dollars in punitive and compensatory damages.
The settlement avoids that by resolving both punitive and compensatory liability in most lawsuits from private plaintiffs and local governments, though Halliburton still faces claims from Louisiana and Alabama, and compensatory damages from some claims by private parties.

Not only are Halliburton’s investors pleased by the settlement, so are the plaintiffs’ lawyers. Stephen J. Herman and James P. Roy, the co-lead attorneys, issued a statement saying, “Halliburton stepped up to the plate and agreed to provide a fair measure of compensation to people and businesses harmed in the wake of the Deepwater Horizon tragedy.”

By Andy Tully of Oilprice.com


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News