Judge Rules Transocean Indemnified for Macondo Spill Claims
BP is required to indemnify Transocean for compensatory damages related to the Macondo oil spill, but Transocean will still be liable for punitive and civil damages related to the incident, a federal judge ruled Thursday.
U.S. District Court Judge Carl Barbier ruled that BP must indemnify Transocean for compensatory damages related to pollution that did not originate on or above the surface of the water, even if the claim is the result of Transocean's strict liability or negligence.
Transocean had asserted that BP was required to do so under their drilling contract for the Deepwater Horizon rig. BP did not contest it was required to indemnify Transocean for some claims, but disputed the scope of indemnity.
BP's duty to defend does not include the expenses Transocean has incurred or will incur in proving its right to indemnity, and is not obligated to fund Transocean's defense against third party claims at this time, Barbier ruled.
Rigzone Editor Jon Mainwaring contributed to this article from London.
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