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BP should indemnify Halliburton for damage claims over oil spill
Last Updated(Beijing Time):2012-02-01 08:40

British oil giant BP must indemnify its contractor Halliburton for some damage claims related to the devastating oil spill in the Gulf of Mexico, a U.S. federal judge ruled on Tuesday.

"BP is required to indemnify Halliburton for third-party compensatory claims that arise from pollution or contamination that did not originate from the property or equipment of Halliburton located above the surface of the land or water, even if Halliburton's gross negligence caused the pollution," U.S. District Judge Carl Barbier ruled in New Orleans, Louisianna.

Last week, Barbier also ruled that BP must indemnify Transocean, owner of the Deepwater Horizon rig that exploded and caused the spill, over some claims under a contract between the two companies.

However, as in last week's ruling, BP will not have to shield Halliburton from civil penalties or punitive damaged under the Clean Water Act, said Barbier.

Barbier also ruled that Halliburton's indemnity could be voided if it is found to have defrauded BP.

London-based BP sued Houston-based Halliburton, which provided cementing services for BP's failed Macondo well, in April to recover a share of its damages and costs from the spill.

BP estimates about 40 billion U.S. dollars in clean-up costs and economic losses from the spill. The company has recovered some 5 billion dollars through settlements with other companies involved in the spill.

"Today's ruling, together with last week's decision on Transocean's financial obligations stemming from its conduct at the Macondo well, is a strong signal that contractors involved in critical well operations will be held accountable for their actions under the law," BP said in a statement following Tuesday's ruling.

"All official investigations have concluded that Halliburton played a causal role in the accident, and following this ruling, Halliburton is, at a minimum, responsible for any punitive damages as well as civil penalties to the extent that they may apply under the Clean Water Act," BP said.

BP's Macondo well ruptured after the Deepwater Horizon oil rig exploded and sank on April 20 last year, spewing up to 4.9 million barrels of oil into the Gulf for nearly three months in the world' s worst marine oil spill.

Source:Xinhua 
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