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Transocean should have done more before 2010 Gulf spill-CEO

Tue, 19th Mar 2013 16:16

By Kathy Finn

NEW ORLEANS, March 19 (Reuters) - The chief executive ofTransocean Ltd, owner of the rig destroyed after BPPlc's Macondo well blew out in 2010, told a federal judgeon Tuesday that his workers made mistakes that day, but were notresponsible for overall safety on the rig.

Steven Newman, who had been CEO for less than two monthswhen the blowout occurred, was emotional at times as he spoke ofthe company's role and responsibilities on the well prior to theexplosion that killed 11 people and caused the worst-everoffshore oil spill in the United States.

"We acknowledge that we should have done more," he saidunder gentle questioning by a lawyer for Transocean, in thefourth week of a civil trial to determine blame for the spill.

Newman's voice shook as he spoke of the disaster on theDeepwater Horizon rig on April 20, 2010, but he denied thatTransocean cut corners when it came to safety procedures.

Noting that the rig contractor is compensated by a dailyrate paid for providing and operating the rig, he said: "We getpaid for 24 hours worth of work, so there's no incentive to take24 hours worth of work and condense it into 23 hours."

The Justice Department, the U.S. Gulf states affected andother plaintiffs are suing BP, Transocean and other companiesfor economic and environmental damages related to the spill.

BP executives have accepted the company's role in theaccident, but believe Transcoean and well cementing providerHalliburton Co share the blame.

Newman said Transocean was responsible for safely performingits own operations on the rig, but that overall responsibilityfor safety at the well site rested solely with BP.

In the same New Orleans federal court two weeks ago beforeJudge Carl Barbier, a Transocean worker who was on the DeepwaterHorizon during the blowout acknowledged there was amisinterpretation of trouble signs beforehand.

Transocean in January pleaded guilty to federal chargesconnected with violating the Clean Water Act and agreed to pay$1.4 billion in criminal and civil fines and penalties.

In its plea, Transocean also admitted that members of itsstaff were negligent in failing to investigate signs the wellwas not secure and that oil and gas were flowing into the well.

Before Judge Barbier, BP must show its own mistakes do notmeet the legal definition of gross negligence required for thehighest amount of damages. BP has already spent or committed $37billion on cleanup, restoration, payouts, settlements and fines.

On top of that, liabilities could stretch into the tens ofbillions of dollars if Barbier determines BP or other defendantswere grossly negligent.

Oil from the spill came ashore from Texas to Florida,threatening livelihoods and state economies dependent on seafoodand tourism, making the list of plaintiffs a long one.

The case is In re: Oil Spill by the Oil Rig "DeepwaterHorizon" in the Gulf of Mexico, on April 20, 2010, No.10-md-02179, in the U.S. District Court, Eastern District ofLouisiana.

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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