(image Source: Ideum)
BY KATIE BRENNAN
You're watching multisource business news analysis from Newsy.
No one wants to take the blame, but there is plenty to go around. Halliburton has filed suit against BP for claiming in a report that the company’s cement work was the root cause of the well explosion that led to the nation’s worst oil spill. Bloomberg has the company’s claims.
“The report ‘intentionally and deliberately omits the critical fact that BP knew or should have known about an additional hydrocarbon zone in the well that BP failed to disclose’ before Halliburton designed the cement program for the well, according to the complaint. Halliburton said it wouldn’t have pumped cement had it known of the zone.”
So why would BP keep this critical information a secret? Halliburton says profit and greed kept the oil giant from making changes to a well that was already over budget and behind schedule. But BP says these claims are just Halliburton’s way of avoiding accountability. The BBC has BP’s response.
"We believe this lawsuit is the latest attempt by Halliburton to divert attention from its role in the Deepwater Horizon tragedy and its failure to meet its responsibilities, and to deflect all blame to BP.”
Lawsuits have been flying between BP and its partners in the drilling project since the spill last year. Halliburton’s filings accusing BP of fraud and defamation are just the most recent in the back and forth blame game between the companies. An environmental law analyst tells The Houston Chronicle’s Fuel Fix blog:
“The finger-pointing is no surprise considering the billions of dollars in Clean Water Act fines and civil claims the companies face ... When the dust settles, however, the likelihood that Halliburton will collect from BP -- or that any of the companies, including BP, will prevail in the suits they have filed -- is slim...’”
Another lawsuit involving BP, Halliburton and three co-defendants also has a bleak outlook for the companies. A judge ruled last week in the favor of thousands of fishermen and business-owners in a multi-billion dollar lawsuit against the companies. The Financial Post has the details.
“The judge overseeing a group of spill-related lawsuits against BP and its business partners ruled that claims for punitive damages -- not just compensatory damages -- could be brought by fishermen and other plaintiffs alleging harm to physical property. If a jury ultimately awards these plaintiffs punitive damages, defendants could be forced to pay out big.”
The trial to decide who is to blame for the deadly explosion and ensuing spill is set to begin in Februrary 2012. There is no word from BP or the plaintiffs’ attorneys on the possibility of reaching a settlement before then.
'Like' Newsy on Facebook for updates in your news feed.
Get more multisource video news analysis from Newsy
Transcript by Newsy