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BP seeks access to $750 million Transocean spill insurance

BP Plc, which has paid more than $28 billion for the 2010 Gulf of Mexico oil spill, seeks to get $750 million of that back by convincing a Texas court that a missing comma allows the energy company access to Transocean Ltd.s insurance policies on the doomed Deepwater Horizon rig.

By Margaret Cronin Fisk, Bloomberg | Updated on September 16, 2014
(Bloomberg) — BP Plc, which has paid more than $28 billion for the 2010 Gulf of Mexico oil spill, seeks to get $750 million of that back by convincing a Texas court that a missing comma allows the energy company access to Transocean Ltd.’s insurance policies on the doomed Deepwater Horizon rig.

BP filed claims with Transocean’s carriers in 2010, seeking to tap a $50 million primary policy issued by Ranger Insurance and $700 million in excess coverage from Lloyd’s of London and other underwriters. The carriers asked the court overseeing the spill litigation to rule that BP wasn’t entitled to unlimited access to Transocean’s insurance.

The maneuvering over insurance coverage comes as a watershed ruling by a federal judge may push the final cost to London-based BP for the catastrophe to more than $50 billion, wiping out years of profits and highlighting the risks of drilling as the industry pushes into deeper waters and ice-bound Arctic fields.

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