BP, Transocean, react to liability ruling

NEW ORLEANS, Jan. 28 (UPI) -- British oil giant BP and drilling contractor Transocean both claimed victory over a court ruling that said both were liable for the massive 2010 oil spill.

"Today's ruling makes clear that contractors will be held accountable for their actions under the law," BP said in a statement. "While all official investigations have concluded that Transocean played a causal role in the accident, the contractor has long contended it is fully indemnified by BP for the liabilities resulting from the oil spill. The court rejected this view."

Transocean said, "This [ruling] confirms that BP is responsible for all economic damages caused by the oil that leaked from its Macondo well and discredits BP's ongoing attempts to evade both its contractual and financial obligations."

Any claim to a victory may be symbolic at best. Judge Carl Barbier ruled that BP should be liable for damages the occurred below the surface of the Gulf of Mexico. But he also ruled that Transocean was liable under the Clean Water Act and the Oil Pollution Act, the Financial Times reported.

Transocean, the owner of the Deepwater Horizon offshore oil drilling platform, claimed that its contract with BP stipulated that BP was to "protect, release, defend, indemnify and hold (Transocean) harmless," from any repercussions of a disaster.

The U.S. Department of Justice argued that BP, Transocean and Anadarko Petroleum were all liable under the Clean Water Act.

If it is ruled any company engaged in "willful misconduct" the penalties for Clean Water Act violations could amount to $4,300 per barrel of oil released into the environment.

A penalty in that case could run into the tens of billions of dollars, the Times said.