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BP gets someone else to help shoulder the blame - and the expense - of the Gulf gusher, with more to come.
BP reaches a $1 billion dollar settlement with partner in Gulf spill.
MOEX offshore, an affiliate of the Japanese company Mitsui and a 10% partner in the doomed Macondo venture, has agreed to pay BP $1.065 billion to cover its share of cleanup costs and other fees in the wake of the Deepwater Horizon disaster.
In a statement, BP said that Mitsui:
“has joined BP in recognizing and acknowledging the findings by the Presidential Commission that the accident was the result of a number of separate risk factors, oversights and outright mistakes by multiple parties and a number of causes”...
Okay...I guess when admitting fault gets someone else to ante up some cash, then it might be worth it to admit some fault.
The money will be added to the $20 billion dollar trust earmarked to meet claims, and to fund the process of cleanup and restoration.
The Jeffries research firm indicated in a statement to investors that the move may indicate that BP may be nearing settlements in several disputes related to the spill.
“Although this is only 50% of what BP could claim it is fully entitled to at present, it does suggest that BP is getting closer to settling the entire legal process,” the Jefferies note said. “If this does transpire, it should free up BP to re-enter the Gulf of Mexico, where c. 40% of its global growth prospects lie.”
The next agreement would probably focus on Houston-based Andarko Petroleum, a 25% shareholder in the doomed well.
And since his lips were apparently moving to indicate he was lying, BP CEO Bob Dudley said...
“This settlement is an important step forward for BP and the Gulf communities. MOEX is the first company to join BP in helping to meet our shared responsibilities in the Gulf, and Mitsui, through MOEX USA Corporation, is showing great corporate citizenship in standing behind its affiliate and making a contribution to meet the costs of this tragic accident. We call on the other parties involved in the Macondo well to follow the lead of the MOEX and Mitsui parties.”
But Andarko may not be as easily led as Mitsui. The partner maintains it still stands on the accusation of gross negligence and willful misconduct on the part of BP in the explosion.
After the accident, both Anadarko and Mitsui & Co’s Moex Offshore LLC unit sued BP in federal court in New Orleans over economic losses from the disaster and said they weren’t responsible for damages and cleanup costs.
But under the agreement announced today, Mitsui agreed to pay BP $1.065 billion to settle claims.
Earlier this month, Anadarko CEO Jim Hackett said for the first time his company was “prepared to come to the table under the right circumstances” to resolve issues with BP.
Several analysts this morning said the deal implies lower liability risks for Anadarko, whose lawsuit is still pending.
And when the corporate entities complete the circular money-throwing, there might be a few crumbs left for the people of the Gulf. Maybe.
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