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BP is billing partners Anadarko Petroleum Corp. and Japan's Mitsui for their shares of the cleanup

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  • Pathfinder
    Re: BP is billing partners Anadarko Petroleum Corp. and Japan's Mitsui for their shares of the cleanup

    Jul. 09, 2010

    Anadarko Tells BP It Won't Help Pay For Oil Spill

    Anadarko To BP: You're On Your Own With Oil Spill; Company Rejects BP's $272M Cleanup Bill

    (AP) <!-- longtext start-->NEW YORK (AP) - Anadarko Petroleum Corp. is refusing to pay BP about $272 million for its share of the costs tied to the massive Gulf oil spill.

    The Houston-based oil company, which owns 25 percent of the Macondo well that blew out on April 20, was on the hook to help BP corral the oil spill and clean up the mess. Spokesman John Christiansen said Friday that Anadarko told BP it would withhold payment for the bill BP sent it in early June.

    "We are disappointed they have failed to live up to their obligations," BP spokesman Mark Salt said in a statement. "Anadarko's refusal to pay their share will in no way affect BP's commitment to stop the leak, clean up the spill, and pay all legitimate claims as quickly as possible."

    Salt said BP was notified of Anadarko's decision on Wednesday.

    Another minority owner, Mitsui Oil Exploration Co., also hasn't responded to BP's request to help pay for the spill. Mitsui has until July 12 to pay, Salt said.

    So far, BP has paid more than $3 billion to deal with the spill. According to a joint-operating agreement, Anadarko is responsible for a quarter of the costs, so BP could be sending more bills.

    Anadarko CEO Jim Hackett has argued that his company should not pay for the spill.

    In June, Hackett put the two companies on course for what could be a high stakes battle over how much each should pay. Hackett issued a statement blaming BP for "reckless decisions and actions" in its handling of the well, particularly its failure to "react to several critical warning signs" as it drilled below the sea floor.

    The operating agreement puts the dispute in the hands of an out-of-court arbitrator.

    BP shares fell 65 cents to $33.10 in midday trading. Anadarko shares rose $1.20, or 2.7 percent, to $45.76.

    <!-- longtext end-->

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  • Pathfinder
    BP is billing partners Anadarko Petroleum Corp. and Japan's Mitsui for their shares of the cleanup

    BP bills Anadarko for its part of spill cleanup

    <TABLE class=byln cellSpacing=0 cellPadding=0 width=428 border=0><TBODY><TR vAlign=bottom><TD class=byln width=328>7/5/2010, 1:18 p.m. CDT The Associated Press
    The Associated Press
    </TD><TD width=3></TD><TD width=97></TD></TR></TBODY></TABLE>

    (AP) ? As BP PLC's costs for the disastrous Gulf of Mexico oil spill climb to just over $3 billion, the British oil giant is billing partners Anadarko Petroleum Corp. and Japan's Mitsui for their shares of the cleanup.
    BP has billed Anadarko, a 25-percent stakeholder in the blown-out well, for more than a quarter billion dollars so far. It also has reportedly billed Mitsui, a 10-percent partner, for $111 million.

    "They are partners in the field, and as responsible partners we would expect them to bear some of the costs," BP spokeswoman Sheila Williams said Monday.

    Anadarko, based in The Woodlands, Texas, said in a statement that it is reviewing the $272.2 million bill sent last week and "assessing our contractual remedies." Anadarko CEO Jim Hackett argued last month that his company should be excluded from paying for the spill due to BP's "reckless decisions and actions" in its handling of the well. Hackett called BP out for its failure to "react to several critical warning signs" as it drilled below the sea floor.

    Calls to Mitsui & Co. for comment weren't immediately returned.

    BP said Monday that it has spent $3.12 billion so far in response to the spill, including attempting to contain oil, paying claims and reimbursing the U.S. and local governments. That's up from $2.65 billion a week earlier.

    The figure does not include a $20 billion fund for Gulf damages that London-based BP created last month.

    The oil company said $147 million has been spent to settle 47,000 claims for payment-or about half of the claims submitted so far.
    The spill began April 20 with an explosion and fire aboard the Deepwater Horizon platform that killed 11 workers.

    As BP continues drilling relief wells that are the best hope for stopping the spill, a giant new oil skimming vessel is being tested in the Gulf. But lousy weather means it may be longer than first hoped before officials know if it can work full-time sucking crude from the sea.

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  • Pathfinder
    Re: BP Emphasizes that Disagreement With Other Parties Will Not Diminish Its Promise to Clean Up the Spill and Pay Legitimate Claims

    <TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD class=F10 vAlign=top>Japan's Mitsui faces bill over gulf oil spill</TD></TR></TBODY></TABLE>
    <TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD class=F6 vAlign=top></TD></TR></TBODY></TABLE>
    <TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD class=F6 vAlign=top>Tatsuya Watanabe
    The Yomiuri Shimbun
    Publication Date : 30-06-2010

    <TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD vAlign=top></TD></TR><TR><TD>Mitsui Oil Exploration Co. could be forced to pay billions of yen to help clean up the massive Gulf of Mexico oil spill, as U.S. authorities and environmental groups set their sights on companies involved in that nation's worst-ever spill.
    Mitsui Oil Exploration holds a 10 percent stake in the well that has been gushing oil into the gulf since an explosion on an offshore rig leased by BP PLC on April 20, which killed 11 workers.

    The state government of Louisiana and environmental groups have been calling for companies involved in the deep-sea well--including Mitsui Oil Exploration--to pay for the damage done to local industries and the environment. Oil has now reached the U.S. coastline. BP has set up a 20 billion dollars (1.82 trillion yen) fund for damages claims arising from the spill. However, criticism over the spill also has been targeted at business entities besides BP.

    Louisiana State Treasurer John Kennedy said last week his state would seek compensation from not only BP but also Anadarko Petroleum Corp., which holds a 25 percent stake in the well, and Mitsui & Co. Group.

    Mitsui Oil Exploration and other firms, along with BP, are facing about 80 lawsuits filed by environmental groups and others demanding the firms pay for the damage caused by the slick. Mitsui firms have usually been insured against claims for damages arising from oil well accidents. But should the company be ordered to pay about 182 billion yen for the Gulf of Mexico spill--based on its 10 percent stake--insurance likely would only cover a fraction of this amount.

    Mitsui Oil Exploration posted a consolidated current account profit of 77 billion yen for the business year ending in March 2009.

    The unprecedented scale of the latest oil spill has left Mitsui officials scrambling to calculate how much it would have to pay. "It's impossible to forecast how things will turn out, including how much of the burden we should be shouldering," an official said.

    The spill could have far-reaching repercussions for oil development. "If governments regularly force private firms to take the blame for such incidents, private businesses could become too scared to drill more wells," said Akihiko Tembo, president of the Petroleum Association of Japan.

    Offshore oil exploration accounts for about 40 percent of overall oil development. Leading oil companies in the West and Japan are fighting tooth-and-nail for dominance in the market.

    Global onshore oil development has almost reached saturation point, but tighter regulations that might be imposed on deep-sea oil exploration could push up development costs--and crude oil prices, according to an official of a leading oil distributer.


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  • Pathfinder
    Re: BP Emphasizes that Disagreement With Other Parties Will Not Diminish Its Promise to Clean Up the Spill and Pay Legitimate Claims

    Anadarko May Use Arbitration to Resolve BP Oil-Spill Dispute

    <CITE class=byline>By Edward Klump - Jun 21, 2010 </CITE>

    Anadarko Petroleum Corp. may resolve a dispute with BP Plc over who should pay for the biggest oil spill in U.S. history through a private proceeding not accessible to the public.

    BP says Anadarko, as a partner with a 25 percent stake in the leaking Gulf of Mexico well, should pay its share of the costs associated with the disaster. Anadarko said June 18 that BP should pay the full tab because of the reckless way it drilled the well. In a statement, the smaller company, based in The Woodlands, Texas, said BP?s decisions on the well ?likely represent gross negligence or willful misconduct.?

    The partnership agreement on the well includes a provision that requires the companies to resolve disputes involving more than $500,000 through a binding arbitration process, according to a regulatory filing today from Anadarko.

    ?On the face of it, it would seem that this would be headed toward arbitration, not litigation,? said Jeff Rensberger, a professor of law who specializes in civil litigation at the South Texas College of Law in Houston.

    ?Generally before an arbitrator, you get a judgment quicker and it is less expensive to do.?

    John Christiansen, an Anadarko spokesman, declined to answer questions about the agreement. ?We are assessing our contractual remedies,? he said in an e-mail.

    Robert Wine, a BP spokesman, declined to comment on potential legal or arbitration proceedings.
    Different Conclusion

    Since the partnership agreement appears to require arbitration instead of resolving the dispute through litigation, the issue may reach a different conclusion from other ongoing investigations, JPMorgan Chase & Co. said today in a note to clients.

    ?The context and arbitrators involved in the arbitration process likely would be different than those involved with the ongoing investigations, so that process could lead to a different conclusion than that from any ongoing investigations,? said JPMorgan, which has an ?overweight? rating on Anadarko shares.

    As much as 60,000 barrels of oil a day is pouring from the well, according to a government estimate. The leak was triggered by an April 20 explosion on a drilling rig leased to BP by Transocean Ltd. Spill costs may climb to as much as $50.8 billion if the well is capped at the end of August, according to a June 16 research note from ClearView Energy Partners LLC, a Washington-based policy analysis firm.

    Mitsui Oil Exploration Co., which is 70 percent-owned by Japan?s second-biggest trading house, Mitsui & Co., has a 10 percent stake in the well. BP owns 65 percent.

    Notice of Dispute

    Once a notice of dispute is delivered, each party is to appoint within 10 days a management representative who can settle the dispute, according to the agreement filed today by Anadarko. If the representatives are unable to resolve the dispute after an allotted period, either party can initiate arbitration proceedings.

    Each side will choose an arbitrator, and those arbitrators will select the last member of their three-member panel, or ask the American Arbitration Association to appoint the third member.

    ?The panel shall actively manage the proceedings so as to make the proceedings expeditious, economical, and less burdensome and adversarial than litigation,? the parties state in the agreement. The process is confidential.

    Confidential Process

    ?Probably both of them would be happy to have this a little bit out of the limelight, as opposed to yet another high- profile, bad publicity moment for them,? said Rensberger, the law professor. Rensberger said it?s also possible that BP and Anadarko could reach a settlement.

    The agreement calls for the panel to issue a final decision in writing within 60 days of the end of arbitration hearing presentations, or a longer period as agreed to by the parties. Either side can ask the panel to modify the award.

    The agreement requires court-approval of the award.


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  • Pathfinder
    Re: BP Emphasizes that Disagreement With Other Parties Will Not Diminish Its Promise to Clean Up the Spill and Pay Legitimate Claims

    You are welcome Sharon

    June 21, 2010, 11:49 AM GMT
    Anadarko Would Take Huge Hit If Forced To Pay Into BP’s $20 Billion Oil Spill Fund

    By James Herron

    The strain of mounting costs from the Gulf oil spill has finally shattered the bonds between BP and its main partner in the leaking well.

    Late last Friday Anadarko Corp., which holds a 25&#37; stake in the leaking Macondo well, accused BP of “gross negligence or willful misconduct” leading up to the explosion aboard the Deepwater Horizon drilling rig that triggered the oil spill. Those words are chosen carefully–under the terms of the operating agreement between the Macondo partners, which also includes Japan’s Mitsui, if BP was guilty of this charge it would be liable for 100% of the costs.

    <DL class="wp-caption alignleft caption-alignleft " style="WIDTH: 293px"><DT class=wp-caption-dt> <DD class="wp-caption-dd wp-cite-dd" style="TEXT-ALIGN: right">AFP/Getty Images <DD class=wp-caption-dd style="TEXT-ALIGN: left">Jim Hackett, Chairman, President and CEO of Anadarko Petroleum Corporation. </DD></DL>
    Anadarko Chairman and Chief Executive Jim Hackett said his sudden outburst was motivated by his dismay over what he has heard in public testimony about BP’s safety decision aboard the rig, rather than his desire to dodge the billions of dollars in liability his company is facing. Although surely his mind was also focused by Moody’s decision to cut his company’s debt rating to junk Friday.

    Moody’s decision may seem harsh. Anadarko has come in for nothing like the public mauling that has so diminished confidence in BP. So far, it hasn’t had to pay anything towards the cost of the cleanup. But while BP takes the flak, it is far better placed to survive the crisis.

    For Anadarko, paying its quarter of the $2 billion BP has spent on the spill so far, plus its $5 billion share into the $20 billion compensation fund BP agreed last week, would be extremely painful, if not impossible.


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  • sharon sanders
    Re: BP Emphasizes that Disagreement With Other Parties Will Not Diminish Its Promise to Clean Up the Spill and Pay Legitimate Claims

    Pathfinder - Thank you for following this.

    Leave a comment:

  • BP is billing partners Anadarko Petroleum Corp. and Japan's Mitsui for their shares of the cleanup

    BP Emphasizes that Disagreement With Other Parties Will Not Diminish Its Promise to Clean Up the Spill and Pay Legitimate Claims

    Release date: 18 June 2010

    Today BP reiterated its pledge to clean up the oil and gas spill in the Gulf of Mexico and to pay all legitimate claims arising from the spill, even though another party already is disputing its responsibility for costs associated with the Deepwater Horizon incident and the resulting spill.
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    Anadarko Petroleum Corporation has announced it is refusing to accept responsibility for oil spill removal costs and damages, claiming that, under an exception to a joint operating agreement?s cost and liability sharing provisions, BP Exploration & Production Inc. (BPXP) was ?grossly negligent? or engaged in ?willful misconduct? as operator for Mississippi Canyon, Block 252 (MC252).
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    BP strongly disagrees with these allegations and will not allow the allegations to diminish its commitment to the Gulf Coast region. ?These allegations will neither distract the company?s focus on stopping the leak nor alter our commitment to restore the Gulf coast,? said BP?s chief executive officer Tony Hayward. ?Other parties besides BP may be responsible for costs and liabilities arising from the oil spill, and we expect those parties to live up to their obligations. But how the costs and liabilities are eventually allocated between various parties will not affect our unwavering pledge to step forward in the first instance to clean up the spill and pay all legitimate claims in an efficient and fair manner.?
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    Additional information

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    BPXP and two other parties, including Anadarko Petroleum Corporation, co-own the leasehold interest in MC252 -- the origin of the oil and gas spill.

    All the co-owners of the leasehold interest previously entered into a written operating agreement under which BPXP would act as ?operator? and be responsible for conducting operations in MC252, but that the parties would share the costs of operations, including the cost to clean up any spill resulting from drilling the MC252 exploratory well, according to their respective ownership interests in MC252.
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    Further, all the co-owners of the leasehold interest filed documents with the U. S. federal government clearly certifying that each would be jointly and severally liable, together with any other responsible parties, for oil spill removal costs and damages in accordance with the Oil Pollution Act of 1990.