Transocean agrees to pay $1.4 billion in Deepwater Horizon settlement

 

The fallout from the 2010 Deepwater Horizon rig disaster at the Macondo well in the Gulf of Mexico reached into 2013 with the agreement of Transocean to pay the US government $1.4 billion for its part in the largest oil spill in US history.

While much of the attention and blame for what happened at the Macondo well has been focused on well and rig operator BP (which agreed to a $4.5 billion settlement with the Feds in 2012 that included a $1.3 billion criminal fine), Transocean has also been under investigation.

The designer and builder of the Deepwater Horizon rig was criticized (along with BP) in a July 2012 report from the US Chemical Safety Board for having inadequate safety rules.

In January 2013 Transocean agreed to pay $400 million in criminal penalties and a $1 billion civil fine after pleading guilty to violating the Clean Water Act.

Like BP, Transocean is hoping that the settlement will fix the rig explosion in its rearview mirror as opposed to still being a part of an uncertain future.

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Picture by Deepwater Horizon Response used under a Creative Commons license.
Stuart Hampton

British editorial veteran Stuart Hampton has been covering oil and gas companies for Hoover's since the Neogene-Quaternary period. Well, actually, since the early 1990s. For the best overview of the oil industry and its history he recommends Daniel Yergin's "The Prize." You can also follow Stuart on Twitter.

Read more articles by Stuart Hampton.

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