Transocean CEO: Making Progress on Deepwater Horizon Resolution

Deepwater Horizon Gulf of Mexico Oil Spill

Transocean CEO: Making Progress on Deepwater Horizon Resolution

HOUSTON - Transocean Ltd. is making progress towards a settlement in the Deepwater Horizon case, Chief Executive Steve Newman said Thursday.

Transocean owned and operated the drilling rig that exploded in the Gulf of Mexico in April 2010, killing 11 people and sending massive amounts of crude oil into the U.S. Gulf of Mexico. The rig was leased by BP PLC.

A trial at a federal court in New Orleans is scheduled for January and "we are well prepared to defend the company in court if necessary," Mr. Newman said during a conference call to discuss the company's earnings. "At the same time, we continue to explore the possibility of a resolution."

When the company disclosed its earnings results late Wednesday, it said it set aside an additional $750 million in estimated loss contingency for Deepwater Horizon-related expenses, an amount that Mr. Newman said "reflects our efforts in this regard." Analysts with Tudor, Pickering, Holt & Co. said the Deepwater Horizon contingency estimates now total $1.95 billion.

Mr. Newman said he believes "we are making progress" in the negotiations.

The executive added that contract terms continue to improve for the company's deep-water rigs, in the midst of strong demand for offshore drilling equipment.

A Transocean executive said out-of-service days for the company's fleet, which have pressured earnings in recent quarters, are expected to reach a low level in the third quarter.

Copyright (c) 2012 Dow Jones & Company, Inc.


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JACK | Sep. 4, 2012
It is absolutely a fault of incompetent management structure, where they do not have the ability to understand and do anything right. People are hired, promoted, and retained based on the culture of who they know and how influential their back up support is. Clear violation of policies so much so that people are hired because their parents and relatives are on high positions in government and they can get the tenders awarded to Transocean. I have some valid names of people and can prove. This is the reason for them to be so incompetent and ill reputed.

Edmond | Aug. 3, 2012
I worked hard for 2 assignments with Transocean but after 1 year I am not called back for assignment. They hired loud mouths, liars with no education back in Singapore office. I am disappointed. Theres so much bad practices in Transocean. I hope Transocean rectify them. They dont want public to know. Regards Edmond

John Morris | Aug. 3, 2012
Its hard to believe that the same people with the competence to drill in such extreme water depths could be so incompetent in elementary well control. Something was sadly wrong with the culture and competence on that Transocean rig along with BP and Halliburton. Did they just get people experienced in knocking out post holes in depleted onshore formations needing a lift pump to flow the well? The people who died had to be the rig crew. Its a sad day when you go to work only to be killed. The focus of the big guys all along has been and still is money and only money. All the guilty responsible for this tragedy are concerned only with their own arses and minimizing their losses. The best the casualties will get is crocodile tears.

Timoteo puati chimpolo | Aug. 3, 2012
It would be better to hire a lawyer to attend that meeting for preparing strong arguments in order to defend very well the trial. I would like to know what caused the explosion. you said 11 people dead, what about wounded? Tim, your future employee

Dr. Fariz Tokio | Aug. 2, 2012
The incident can be avoided if all the safety measure has been followed strictly. Poor Gulf of Mexico. And now more efford and resources needs to overcome the environment impact.

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