Boston, MA 09/04/2014 (wallstreetpr) – According to reports, Halliburton Company (NYSE:HAL) has decided to pay $1.1 billion in the settlement case of Macondo issue. The company was allegedly involved in the famous Macondo oil spill incident that took place four years back.
Macondo oil spill incident:
According to available information, ultra-deepwater Horizon drilling platform owned by well-known off-shore driller Transocean LTD (NYSE:RIG) entered into a contract with BP plc. The platform capsized after an explosion on Apr 20, 2010 while it was in operations at Gulf of Mexico (GoM) off the coast of Louisiana. According to reports, BP plc (ADR) (NYSE:BP) was the owner of that Macondo, while HAL provided the cementing service for the construction of the Macondo. The explosion not only killed 11 workers, but also wasted millions of gallons of crude. It was termed as the worst ever oil spill that took place in the country. Since that time, all the three parties involved in this incident kept blaming on each other.
BP plc (ADR) (NYSE:BP) always blamed Halliburton Company (NYSE:HAL) for the poor quality of material supplied in the construction work. At the same time, the employer was blamed by everybody for overlooking risks and poor well design.
What’s in the settlement agreement:
According to a statement given by HAL, $1.1 billion of installment will be paid in three equal installments over a period of next two years to trust. One of the spokespersons of HAL said that the settlement amount included everything including legal fees and other charges which are subjected to be given approval by United States District Court for the Eastern District of Louisiana. Other than the normal legal fees, this settlement amount also includes various charges related to commercial fishing industry and property damages. Although it’s just the acceptance of Halliburton Company (NYSE:HAL), while the final settlement is yet to be approved by court. Reports also claim that a trial for the penalty is expected to take place in January, 2015.
