Anadarko to Assist with Spill Response
HOUSTON (Dow Jones Newswires), May 4, 2010
Anadarko (APC) Chief Executive Jim Hackett said that the company will assist in the industry-wide effort to contain the oil spill in the U.S. Gulf of Mexico and would not hesitate to protect the company and its shareholders.
Anadarko has a 25% non-operating stake in the damaged well leaking oil in the U.S. Gulf of Mexico. The company invested in the well but did not participate in the well design. The company carries insurance designed to cover $177.5 million of Anadarko's costs associated with the oil spill, less deductibles of $15 million.
"When all is said and done, we're going to be protecting Anadarko shareholders," Hackett said during a conference call to discuss the
company's first-quarter earnings.
The oil spill in the U.S. Gulf of Mexico has weighed heavily on Anadarko shares. The spill resulted from an April 20 explosion and fire that sank a Transocean rig. The rig was drilling a well for oil giant BP. That damaged well is now spewing oil into the Gulf.
Hackett said he could not speculate as to what ultimately caused the spill and offered his condolences to the families of workers aboard
the rig who died as a result of the incident.
Copyright (c) 2010 Dow Jones & Company, Inc.
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