UPDATE: Anadarko Blames BP's Action For Oil Spill; Cut To Junk

(Adds details including Moody's downgrade, BP comment, stock quotes) DOW JONES NEWSWIRES Anadarko Petroleum Corp. (APC) late Friday called the oil spill in the Gulf of Mexico "preventable and the direct result of BP's reckless decisions and actions," allegations that BP PLC (BP, BP.LN) immediately rejected. The public sparring came as Moody's Investors Service downgraded the oil producer's ratings to junk territory, citing uncertainty about its possible 25% share of the cleanup costs and financial liabilities resulting from the spill. BP said it strongly disagreed with Anadarko's comments but it repeated its promise to clean up the spill and pay all legitimate claims arising from it. Anadarko's statement comes one day after BP Chief Executive Tony Hayward said before a congressional committee that its minority partners in the well--Anadarko and Mitsui Oil Exploration Co.--were also responsible parties. BP operated the Deepwater Horizon well that exploded in April, resulting in the deaths of 11 people and creating the worst environmental disaster in the Gulf of Mexico. Anadarko told Dow Jones Newswires earlier this week that it had received a bill from BP for its share of the cleanup effort. In a statement, Anadarko Chairman and Chief Executive Jim Hackett said recently disclosed information and testimony before Congress this week "indicates BP operated unsafely and failed to monitor and react to several critical warning signs during the drilling" of the well. "BP's behavior and actions likely represent gross negligence or willful misconduct and thus affect the obligations of the parties under the operating agreement," he added. Although there was some finger-pointing between BP and service companies working for it at the time of the explosion--Transocean Ltd. (RIG) and Halliburton Co. (HAL)--this is the first time Anadarko publicly criticized its partner in the well. The statement's strong language marks a growing rift between BP, which operated the field, and its partners, as well as the rest of the oil industry. Earlier this week, the top executives of Chevron Corp. (CVX), Exxon Mobil Corp. (XOM) and Royal Dutch Shell PLC (RDSA) publicly distanced themselves from BP. Anadarko also said it will donate to charitable and civic agencies along the Gulf Coast any revenue it is entitled to receive from oil recovered from the cleanup efforts. Moody's--which cut the ratings one notch to Ba1, one step below investment grade, and placed them on review for further possible downgrade--said it expects Anadarko to meet its responsibilities through some allocation of some portion of the liability from the accident. The ratings agency added that continued uncontrolled flow from the well will result in higher containment and cleanup costs than initially expected and potential further increases in litigation costs and fines. The other two major ratings agencies, Standard & Poor's Ratings Services and Fitch Ratings, have lowered their outlooks on Anadarko's ratings to negative because of the increasing costs from the spill. In its statement, Anadarko pointed to the terms of the joint operating agreement related to the lease that say BP was required to drill the well "in a good and workmanlike manner" and to comply with all laws and regulations. The agreement also said BP is responsible to its co-owners for damages caused by its gross negligence or willful misconduct. "We recognize that ultimately we have obligations under federal law related to the oil spill, but will look to BP to continue to pay all legitimate claims as they have repeatedly stated that they will do," Hackett added. Anadarko's shares gained 1.2% to $43.08 in after-hours trading Friday. They were down 32% this year as of the market's close Friday. BP's American Depositary Shares fell 0.7% to $31.52 in after-hours trading. -By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com (Angel Gonzalez contributed to this article.) (END) Dow Jones Newswires June 18, 2010 18:37 ET (22:37 GMT)